What is Covered Under a Basic Auto Policy?

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Urban Insurance has specialized in writing Car Insurance policies for the past 5 decades. Over that time we have heard thousands of questions, but some we have found come up frequently.

The first step in shopping for a car insurance policy is to understand the parts that make up a typical Personal Auto Insurance policy.

A basic auto insurance policy usually includes six coverages (or parts).

Bodily Injury Liability. Bodily Injury Liability pays for injuries that the covered drivers, cause to someone else. In Illinois the minimum limits are $20,000 per person and $40,000 total Bodily Injury per accident. In Indiana the limits are $25,000 per person and $50,000 total Bodily Injury per accident. It’s critical that you carry enough liability insurance, because if you find your self the cause of a serious accident, you could be sued for a significant amount of money. Medical bills arising from a serious accident, particularly if several people are hurt, will certainly exceed the basic mandatory limits. Please remember, you can be held responsible for damages in excess of your policy limits. Yes they can take your home or other assets. It is for this reason that people often opt to by higher limits.

Property Damage Liability. Property Damage Liability pays for damage that the covered drivers, cause to someone else’s property. Examples include another car as well as damage you do a fuel pump, street light, guard rail, buildings or other structures your car hits.

Medical Payments or Personal Injury Protection (PIP). Medical Payments pays for the treatment of injuries to the driver.

Comprehensive Coverage. Comprehensive Coverage Portion of an auto insurance policy that covers damage to the policyholder’s car not involving a collision with another car (including damage from fire, explosions, earthquakes, floods, and riots), and theft. This coverage is usually sold along with Collision coverage. State law does not require comprehensive and Collision coverages but if you have a car loan, it is likely your lender will require you carry both coverages it until your loan is paid off.

Collision Coverage. Collision Coverage pays for damage to your car stemming from a collision with another car, object or as a result of your car colliding with the street. comprehensive and Collision coverages are written with a deductible. The higher your deductible, the lower your premium.
Uninsured and Underinsured Motorist Coverage. UNINSURED MOTORISTS COVERAGE protects a policyholder from uninsured and hit-and-run drivers.

Now that you have an understanding of the parts that make up a typical Personal Auto Insurance policy you can get a rate based on the limits that you need.

Get your FREE Auto Insurance Quotes from Urban Insurance Agency. We will compare rates for more than 20 different companies to find you the lowest price on your auto insurance coverage.

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Urban Insurance Agency has been helping customers save money on their car insurance for more than 50 years. We represent sixteen different companies in order to find you the lowest price on your Auto Insurance.

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