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Understanding Auto Insurance Coverage
Auto insurance is a necessity to make sure that you are taken care if you were to be in an accident. However, knowing exactly what you need and what coverage you have can be difficult to understand at times.
If you’re the type of person that needs a little clarification on auto insurance, we’ve got your back! If you’ve ever needed help understanding your auto insurance coverage, we are here to help! Take a look at our helpful guide, as we break down your auto insurance coverage to fit your needs.

What Is Auto Insurance?

To understand what auto insurance is, let’s take break it down first. What exactly is the definition of auto insurance?
The Merriam-Webster’s Dictionary definition insists that insurance is “an agreement in which a person makes regular payments to a company, and the company promises to pay money if the person is injured or dies, or to pay money equal to the value of something (such as a house or car) if it is damaged, lost, or stolen.”
Got it? Good! If not, essentially, you are paying some amount of money to cover expensive items. The amount of money you pay is dependent upon the type of coverage you choose. Depending on your coverage, if these items are ever stolen or damaged, the insurance company you pay can help in replacing or repairing the item.
What Does That Mean For Your Car?
Cars are very expensive machines so having them insured makes sense. Car insurance provides peace of mind of knowing that your expensive property will be repaired or replaced if you find yourself in an accident or it is stolen.

What Does Auto Insurance Cover?

When it comes to auto insurance, there are four typical types of insurance coverage you should be aware of. The following are the different types of insurance you can buy:

Auto Liability Coverage

If you tend to hit things with your car, this is what you need. (And what most states require it legally). Liability is the insurance that covers the injury or property damage that you may cause someone else.
In other words, liability is what covers the damage to the other person in an accident.

Medical Coverage

Medical can cover the cost of treating your injuries or the injuries of your passenger. Medical coverage can also extend to cover lost wages or even rehab.
In plain terms, medical coverage is what takes care of you and those in your car if you get hurt in an accident.
Physical Damage (Full) Coverage
Just for fun, let’s say your car is stolen. While on this joy ride, the thief hits a light pole and damages the fender. After a while of hitting mailboxes, curbs, and whatever else, the thief is pulled over, and your car is returned.
Physical damage coverage is your new best friend, and you could get the damage covered on your vehicle. You’ll often hear this referred to as “Full Coverage,” but this only describes what covers damage to your car.
In other words, physical damage coverage protects your car against risks like theft, fire, weather, and accidents. (In our example, two of those factors were at play!)

Contact Us

If you still have questions about auto insurance and what you might need, give our team a call today! We will be happy to answer any questions you might have as well as get you set up with affordable options.

Woodhome Insurance

Home – Auto -Business

(410) 580-2800

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