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What is Covered By an Auto Insurance Policy?

Understand the coverage for your car

Hitting the open road feels liberating, but it's crucial to be prepared for the unexpected. And that's where your trusty auto insurance policy comes in – your financial guardian angel in case of fender benders, stolen vehicles and natural disasters. But with all those confusing terms and coverages thrown around, navigating the world of car insurance can feel overwhelming. Fear not, fellow drivers! This blog will peel back the layers and dissect the six essential coverages of an auto insurance policy, empowering you to choose the shield that keeps you cruising confidently.

Note that each type of coverage is priced separately, so there is variability in policy limits and pricing.

The six types of car policies:

1. Bodily Injury Liability: The Shield for Others
Bodily injury liability coverage applies to injuries that you, the designated driver or policyholder, cause to someone else. Thankfully, bodily injury liability coverage steps in, helping you cover the cost of medical bills and legal fees if someone gets hurt due to your driving. Think of it as a financial airbag for the other driver and their passengers. You and family members listed on the policy are also covered when driving someone else’s car with their permission.

2. Medical Payments/Personal Injury Protection (PIP): Patching Yourself Up
Accidents happen, and whether it's you or your passengers who get banged up, PIP comes to the rescue. This coverage helps pay for medical expenses, lost wages, and even funeral costs arising from an accident involving your car.

3. Property Damage Liability: Protecting the World Around You
Whoops, you accidentally scraped your neighbor's mailbox while parallel parking. It happens! No worries, property damage liability has your back. This coverage compensates for any damage your car inflicts on other people's property, whether it's another car, a fence, or even a prized lawn gnome.

4. Collision: Your Car's Guardian Angel
This policy takes the sting out of bumps and bruises for your own car. Collision coverage swoops in and covers the cost of repairs, even if you're the one who hit the pothole (we've all been there!). Whether you're at fault or not, collision coverage reimburses you for repairs, minus a deductible. Think of it as a magic eraser for your car's battle scars.

5. Comprehensive: When Disaster Strikes (and it's Not Your Fault)
Comprehensive coverage has your back, protecting against not just hailstorms but also fire, floods, vandalism, theft, and even those rogue deer encounters. It's like an umbrella for your car, shielding it from the unexpected.

6. Uninsured/Underinsured Motorist Coverage: When Others Don't Pull Their Weight
Let's say you get hit by a driver who's either uninsured or doesn't have enough insurance to cover the damage. Uninsured/underinsured motorist coverage acts as your superhero, stepping in to cover your medical bills and car repairs. It's like a safety net to protect you from those who haven't prepared for the road ahead.

Remember, these are just six types of coverages. Your specific needs might differ, so it's always best to consult with a trusted insurance agent. UHCU Insurance Services agents can help you navigate the maze of options and find the perfect protection for your driving adventures. Choose your coverage, and hit the road with confidence, knowing you're financially prepared for whatever twists and turns life throws at you! Get a quote online today or call 512.435.4555 and let’s get an auto insurance policy started for you! 

UHCU Insurance Services, LLC is a Credit Union Service Organization. Business conducted with UHCU Insurance Services, LLC is separate and distinct from any business conducted with United Heritage Credit Union, its parent Credit Union. Insurance products offered by UHCU Insurance Services, LLC are not (i) deposits of United Heritage Credit Union, its parent Credit Union or its partner Alloy Insurance Partners, therefore are not protected by the NCUA and are not exclusive to Credit Union members and (ii) an obligation of or guaranteed by UHCU Insurance Services, LLC, its parent Credit Union or its partner and may be subject to risk. UHCU Insurance Services offers coverage for Texas residents only. Any insurance required as a condition of an extension of credit by United Heritage Credit Union need not be purchased from UHCU Insurance Services, LLC and may be purchased from an agent or insurance company of the member’s choice.

What is Covered By an Auto Insurance Policy?