WHAT'S
IN AN AUTO POLICY?
Your auto policy may
include all 6 coverages or some of them. Each coverage is priced
separately.
1.
Bodily Injury Liability
For injuries the policyholder causes to
someone else.
2. Medical Payments or Personal
Injury Protection (PIP)
For treatment of injuries to the driver and
passengers of the policyholder's car. At its broadest, PIP can cover
medical payments, lost wages and the cost of replacing services normally
performed by someone injured in an auto accident.
3. Property Damage Liability
For damage the policyholder caused to
someone else's property.
4. Collision
For damage to the policyholder's car from a
collision. The collision could be with another car, a light post, fire
hydrant, etc.
5. Comprehensive
For damage to the policyholder's car that
doesn't involve a collision with another car. Covered risks include fire,
theft, falling objects, missiles, explosion, earthquake, flood, riot and
civil commotion.
6. Uninsured Motorist Coverage
For treatment of policyholder's injuries as
a result of collision with an uninsured driver. Underinsured motorist
coverage can also be included in an auto policy. Underinsured motorist
coverage comes into play when an at-fault driver has auto liability
insurance, but the limit of insurance is inadequate to pay for your
damages.
Each
state requires that you have certain types of coverages with minimum
liability limits. In Illinois the limits are $20,000 per person and
$40,000 per occurrence. The insurance industry recommends that your bodily
injury liability limits be $100,000 per person and $300,000 per
occurrence. |
