Decoding 7 different auto insurance coverages

There are many different auto insurance coverages.

The world of car insurance can seem very overwhelming and complicated. Insurance isn’t as simple as choosing a one-size-fits all policy. There are different coverages to think about as you’re getting insurance for your vehicle. But what do each of those coverages do? How can they help you and how to do they protect your bank account in the event of a loss or claim? We’re going to decode 7 different Atlanta insurance coverages for you.

Breaking down 7 auto insurance coverages.

1. Auto liability.

Okay, this one is really important as far as auto insurance coverages go. It’s the coverage that’s required by the state. Basically, it helps you cover the costs that you’re legally obligated to pay to another driver if you’re at fault in an accident. It can also help you cover legal expenses if you get sued.

There are different parts to auto liability insurance.

Bodily injury liability can help cover the medical expenses, pain and suffering, and lost wages of the other driver and their passengers if you’re at fault in a car accident. It can help you cover your legal obligations to them.

Property damage liability can help cover the damages to other peoples’ property if you damage it with your vehicle. For example, it can help cover the repairs or replacement of the other driver’s car if you get into a car accident. (Note that it will not cover the damages to your own vehicle.)

Pro tip: The minimum limits of liability insurance in Georgia are 25,000/50,000/25,000. That means that you would have $25,000 of bodily injury insurance per person, $50,000 of bodily injury liability per accident, and $25,000 of property damage liability. (However, you might want to consider getting higher limits of coverage than the state minimum in order to protect yourself in case you ever get into a serious accident.)

2. Collision coverage.

Now, we mentioned that liability insurance won’t cover damages to your car if you’re at-fault in an accident. But that’s where collision coverage comes in – it can help you cover the repair or replacement of your own car if you’re in an accident or otherwise have a collision. (As far as auto insurance coverages go, this can help you protect your car.)

3. Comprehensive coverage.

Once again, liability coverage does not provide protection for your car. Comprehensive coverage can help you repair or replace your car if it’s damaged by something other than an accident. It covers losses like animal strikes, fire, vandalism, and falling objects (i.e. trees). It can even cover theft.

Pro tip: If you have a loan for your car, your lender or lienholder may require you to carry comprehensive and collision coverage.

4. Uninsured motorist/Underinsured motorist (UM/UIM).

Uninsured motorist and underinsured motorist coverage (UM/UIM) can help protect you financially if you are ever hit by a driver who does not have insurance (uninsured motorist) or who doesn’t have enough insurance to cover the total cost of the accident (underinsured motorist.)

Liability insurance is required by the state of Georgia, but not all drivers carry it. And some drivers might only have the minimum limits, which might not be enough to cover all the expenses resulting from a serious accident. That’s why you might want to consider UM/UIM when you’re thinking about auto insurance coverages.

5. Medical payments.

Medical payments coverage is a no-fault coverage that can help you cover your medical bills and the medical bills of your passengers following an accident.

6. Rental reimbursement coverage.

If you’re in a car accident, you might need to get a rental car while your own vehicle is in the shop being repaired. Rental reimbursement coverage can help you cover the expenses of renting a car while you’re waiting for your car to be fixed. It’s usually a fairly inexpensive coverage to add to your car insurance policy, but one that could come in handy. There will typically be a limit of coverage per day and per accident (for example, $30 per day and $900 per accident.)

7. Gap insurance.

Gap insurance can help you if you buy a new car and take out a loan. Since car values depreciate rapidly over time, you might find yourself owing more on your loan than your vehicle is actually worth. If you get into an accident, you might not get enough reimbursement from the insurance company to cover the balance of your loan. Gap insurance can help cover the difference.  

Those are seven auto insurance coverages decoded. When you’re getting Atlanta car insurance, it’s important to make sure that you have enough coverage to fully protect yourself in the event of an accident. It’s also important to evaluate whether you want your own vehicle to be covered by insurance (meaning that you would want to get collision and comprehensive coverage.) Anyways, hopefully these bite-sized explanations help to translate the strange language that is car insurance!

If you need to get car insurance quotes, we can help. Our agents can help you get multiple quotes for Atlanta car insurance so you can get the coverage you need. Getting started with quotes is easy – all you have to do is give us a call or fill out our online quote form.