Coverages Explained – Personal Auto Insurance - Liability, Full Coverage, Comprehensive, Collision

As agents we often take for granted our knowledge for insurance, assuming normal folks understand our lingo.  Here are some explanations of coverages:

·   Liability – the legal obligation a policyholder is to pay in case of a car accident. Liability is categorized as bodily injury and property damage coverage.  Liability insurance protects the policyholder and pays, up to the policy limit amount, monetary compensation to the driver/passenger(s) injured in the other vehicle or for other property damaged (including autos directly and indirectly involved in a car accident).   In KY or IN, a good starting point for liability coverage is $100,000/$300,000/$100,000 - Which mean $100k BI per person/$300k BI per accident/$100k property damage.

·     Full Coverage – typically this is referring to an auto policy having both comprehensive and collision coverages.

Comprehensive – Also referred to as "Other than Collision" coverage, provides coverage for just about anything to your vehicle, except an accident/collision while driving or mechanical failure.  An auto policy can provide only comprehensive coverage, atop the liability, for any named vehicle. Comprehensive covers:

• Theft
• Vandalism
• Fire
• Glass damage (such as a broken windshield)
• Damage sustained from hitting an animal or bird
• Damage from falling objects or missiles
• Damage sustained due to severe weather or natural disaster -- such as wind storm, hail, hurricane, tornado, etc.

Collision – this provides coverage to repair or replace your vehicle damaged in a car accident that was your fault. It specifically deals with accidents that occur while the insured person is driving and/or applies to the insured person's vehicle. Damage done to others' property is covered by auto liability insurance. Damage or loss caused by other factors, like theft, vandalism, or weather are covered by auto comprehensive insurance.  An auto policy cannot provide collision coverage without also having comprehensive coverage for the named vehicle.

Next post will include explanations for:  Personal Injury Protection, Medical Payments, Uninsured and Underinsured Motorists

Michelle Ferrigno, Insurance Agent
Cell: 502.643.4124
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