Comprehensive auto insurance covers theft of your vehicle and damage caused by vandalism, break-ins, fire, or falling objects.
No car insurance will cover the theft of personal belongings inside the vehicle. If you have personal property coverage under your homeowner’s, renter’s, or condo insurance policy, any personal items stolen out of a vehicle will be covered under that policy.
If any of your vehicle’s parts are stolen or damaged, your auto insurance policy will help pay for the damage or can even replace the vehicle if it’s a total loss situation. A total loss would mean your car’s value is worth less than the amount of damage or cost of repairs.
What Auto Insurance Covers
As a form of property coverage, auto insurance has coverage for liability as well as loss or damage from fire, theft, and covered events. There are a few types of auto insurance coverage. Liability coverage protects you if you are at fault for a collision and found legally liable in the event that you hit someone or something, and will pay for the medical bills and repairs for the other person and their vehicle. Uninsured motorist coverage and underinsured motorist coverage will cover the cost of damages to your car after a collision if the person who hit you has little to no insurance and cannot cover the cost of your repairs. Collision coverage will cover you after an accident and pay for the repairs to your vehicle. Comprehensive coverage will pay for damage to your car from theft, fire, or falling objects.
Mandatory minimums in each state will require you to hold at least liability coverage to a certain amount. Liability coverage works in a ratio of money the insurance company will pay to a single person, to everyone injured in the accident, and for repair of the other vehicle if you hit someone or cause an accident. Some states have minimum amounts for each of these values.
It is important to hold liability coverage to protect your assets if you are found legally responsible for causing a car accident. Without insurance, you will have to pay for the other person’s medical bills and vehicle repairs out-of-pocket. You can hope that the other person has underinsured motorist coverage, but as a responsible driver you should hold liability coverage. Collision coverage is also important if you are in an accident because it will pay for damage to your vehicle to cover any repairs needed.
Personal Property Coverage
Property insurance is a larger category that includes auto, home, renter’s, condo, boat, and flood insurance. It covers liability and has property protection for damage from fire, theft, and other covered events named in your policy.
Business insurance can include vehicle coverage, which covers damage or loss from covered events. These covered events include fire, theft, vandalism, and certain weather events.
For all of your property and casualty questions, speak to an agent from Redwood Agency Group.