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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 defines insurance as “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 damages, loses, or gets 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, your insurance company, which you pay, can either replace or repair the item if it ever gets stolen or damaged.
What Does That Mean For Your Car?
Insuring cars makes sense because they are costly machines. 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
For fun, let’s say someone steals your car. 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 police pull over the thief, and they return your car.
Your new best friend is physical damage coverage, and it can cover the damage 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 gladly answer any questions you might have and assist you in setting up affordable options.

Woodhome Insurance

Home – Auto -Business

(410) 580-2800

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