Some Coverage Your Auto Insurance Policy Should Have

When we talk about auto insurance, for many that are not well knowledgeable about the policy, it may seem like just vehicle insurance. Auto insurance is a collection of several other policies packaged into one. In this post, we will look at some of these policies.

Liability Coverage

Like any other liability insurance, it tends to protect other parties apart from you are those in your coverage. If you get involved in an accident and you are the one at fault, this policy gets you covered. The coverage will help cover all expenses used in taking care of the other people you hit. This policy will not protect you or any occupant of your car.

Bodily Injury Liability (BIL)

Just like the liability coverage policy, this policy will take care of all the medical expenses incurred in treating all those involved in the accident in the other car. This will only take effect if you are at fault. Usually this policy is expressed as a ratio. For example a 20/50 policy will cover expenses up to $20,000 for a single injured occupant. The 50 represents $50,000 and will be the maximum the policy will pay for all the people involved, irrespective of the number.

Property Damage Liability

This is yet another policy that takes care of the other party’s damage, if you are at fault. This policy will cover all damage to the other party’s vehicle. Usually this policy works hand-in-hand with the Bodily Injury Liability. Using the above example, it would be represented as 20/50/10. The 10 represents $10,000 and would be the maximum for the vehicle repair cost.