What Does Car Insurance Cover?
Car insurance can be more than just a legal requirement; it can be a crucial financial safety net for drivers. Whether you’re a seasoned motorist or a new driver, knowing what your policy covers can save you from financial headaches down the road.
Understanding Car Insurance Coverage
Auto insurance typically includes the following coverage:
- Liability coverage can pay for injuries and property damage to others if you’re at fault in an accident.
- Collision coverage can help financially cover repairs or replacement of your vehicle after a collision.
- Comprehensive coverage can offer financial protection for noncollision incidents, including theft, vandalism and severe weather.
- Medical payments coverage can pay for medical expenses for both you and your passengers.
- Uninsured/underinsured motorist coverage can offer financial protection if the other driver is at fault and uninsured or has inadequate coverage.
What is Not Covered by This Insurance?
The following are some common car insurance exclusions:
- Excluded driver—If you live with a high-risk driver or want to exclude someone from your policy, the insurance company may specifically write this clause into your auto insurance policy.
- Family member exclusion clause—If two family members are in the insured vehicle and are involved in an accident, the driver’s liability insurance typically won’t pay out for a claim filed by the passenger. This stipulation is used to help prevent fraudulent claims.
- Intentional act exclusion—Liability coverage voids insurance for injuries or property damage if the insured driver intentionally harms someone or something with their vehicle.
- Medical payments exclusions—Medical payments coverage can help pay for your medical expenses or a passenger’s after an accident. However, specific exclusions apply, such as injuries to employees (covered by workers’ compensation) or using a vehicle as a residence.
Contact Thornburg Insurance Agency to review the specific details of your policy.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
Categories: Blog
Tags: auto insurance, car insurance, collision coverage, comprehensive coverage, liability coverage