When you buy an auto insurance policy, you are buying a package of individual coverages, with each coverage protecting you against different types of loss. Once you understand the various types of coverage, you can decide which ones to include in your personal insurance package. You can also determine the limits of coverage you will need. The following are some common areas of coverage found in a Corpus Christi auto insurance policy:
Bodily Injury (BI) Liability Coverage pays, up to the coverage limits, for damages due to injury or death of others in a vehicle accident for which you or the operator of your vehicle is legally responsible. It also pays your legal defense costs. In most states, this coverage is mandatory.
Property Damage (PD) Liability Coverage pays, up to the coverage limits, for damages to another individual’s vehicle or property resulting from an accident for which you or the operator of your vehicle is legally responsible. In most states, this coverage is also mandatory.
Medical Payments Coverage pays, up to the coverage limits, for reasonable and necessary doctor, hospital, and funeral expenses for you and your passengers injured or killed in an accident, regardless of who is at fault. Payments are usually limited to one to three years after the accident. This coverage is optional in most states which do not have no-fault insurance systems.
Uninsured/Underinsured Motorists (UM/UIM) Coverage pays, up to the coverage limits, for bodily injury to you or your family resulting from the negligence of someone whose liability insurance limits are insufficient. The definition of an underinsured motorist varies from state to state.
Collision Coverage pays, up to the coverage limits, for damage to your vehicle or a vehicle you are operating caused by a collision or rollover. This coverage is usually required if you have a vehicle loan.
Comprehensive Physical Damage Coverage pays, up to the coverage limits, for damage to your vehicle or any vehicle in your custody resulting from theft, fire, vandalism, flooding, hail, or other perils (but not damage by collision or overturning). This coverage is usually required if you have a vehicle loan.
Rental Reimbursement pays, up to a specified amount, for rental vehicle charges while your vehicle is being repaired for damage covered under your policy. If you prefer not to incur the cost of renting a vehicle yourself and cannot be without a vehicle while yours is being repaired, you might consider this coverage.
Towing and Labor covers some costs incurred for services rendered at the place of breakdown or for towing to a repair shop. It covers the delivery of gas, oil, or a battery but not the cost of these items. If you lock the keys in the vehicle or need to have a tire changed, related services may also be covered. These services are often included in auto club memberships, which can result in unnecessary duplicate coverage.