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The personal auto insurance policy consists of various types of coverage. Some coverage is designed to cover damages to other persons or their property while other coverage pays for your medical expenses and damages to your vehicle.

With a few exceptions, a policy normally consists of four separate coverages; each with its own conditions.

1. Liability Coverage
2. Medical Payments Coverage
3. Uninsured Motorist Coverage
4. Comprehensive and Collision Coverage

A person does not need to purchase all available coverage unless desired; however, some states do make it mandatory for drivers to maintain a certain amount of coverage to comply with State laws.

Additionally, some states and insurance companies offer other coverage such as road side assistance and rental car reimbursement. In brief, the following is a description of what each of the above four parts cover.

Liability Coverage covers damages for others’ injuries and property damages an insured becomes responsible for due to an automobile accident. This coverage is normally mandatory by State laws. The limits required from state to state can also vary.

Generally, liability coverage is divided into three parts. One example being: 20/40/10. The 1st number, in this example “20” represents the amount of liability coverage for bodily injury per person in thousands. ($20,000) The 2nd number “40” represents the total amount of bodily injury liability coverage as a total per accident, if there were more than one injured person. ($40,000) The 3rd number “10” represents the coverage for others’ property damage such as, but not limited to, their vehicle.($10,000)

Medical Payments Coverage provides medical protection for the policyholder and, conditionally, their family members and passengers occupying the vehicle involved in an accident regardless of fault. In some states, insurance companies offer Personal Injury Protection which also covers a driver’s injuries regardless of fault.

Uninsured Motorist Coverage in most states indemnifies the insured for bodily injuries, up to the policy limits, sustained as a result of an accident in where the other driver being at fault did not have insurance coverage or their coverage was insufficient.

Some states also offer Uninsured Motorist property damage coverage for the policyholder’s vehicle in the event of a similar accident.

Comprehensive and Collision Coverage pays for damages to the policyholder’s vehicle in case of direct and accidental losses including, but not limited to, theft, vandalism, fire and accidents.

In combination with liability coverage, this coverage is commonly referred to as “full coverage”; however, having this coverage still can leave many situations uncovered. One should use caution with the term “full coverage” as it does not fully cover all losses.

The above crash course was designed to give you a better understanding of coverage for the purpose of obtaining car insurance quotes. Feel free to visit OnlineAutoInsurance.com for an obligation free online auto insurance quote comparison from various quality carriers.

Remember that auto insurance coverage contains many conditions and limitations not covered in this article, so be sure to check with a licensed professional for full details. To learn more, feel free to visit OnlineAutoInsurance.com’s auto insurance coverage section.