Are you sure about what is covered in your auto insurance policy?

► Protect yourself and your car: review your insurance policy
Last Updated on July 4, 2023 by Carlos Lopez

The purpose of this article is to provide a clear understanding of the various types of coverage in auto insurance.

The information provided here is not investment advice, but rather general information to help you make more informed decisions when it comes to your car insurance.

Auto insurance consist in a contract that protects the insured from financial loss due to physical damage or bodily injury resulting from use of an automobile or other vehicle.

It provides protection against liability for third-party claims and damages such as property damage and bodily injury, as well as providing collision and comprehensive coverage for the vehicle.

What Is Full Coverage Car Insurance?

Although many people tend to call any type of policy comprehensive insurance, full coverage generally refers to policies that add comprehensive and collision coverages in addition to the state-mandated minimum liability coverage.

Seriously, full coverage auto insurance is just a term people use to describe a policy that includes coverage that helps protect your car.

It is important to understand that this does not mean that everything is covered for you, nor does it guarantee that your claim will be approved. 

Then, among the main elements that make up the full insurance policy include:

Liability insurance

The term liability insurance refers to insurance products which offer an insured person protection from claims stemming from injuries and damages caused by another person or property. 

For commercial vehicle accidents, if you own the car and are using the vehicle for work, then you need to have a commercial motor insurance policy.

Most small businesses will require this coverage. 

Liability Insurance (also called Third Party Insurance) is part of a general risk funding insurance system designed to protect a buyer (the insuree) against liability risks created by lawsuits and similar claims. and protects the insured should a buyer be sued over claims within the scope of coverage by an insurance policy.

Bodily injury liability insurance

If someone injured in an accident caused by you files a lawsuit against you, bodily injury liability insurance covers the costs of legal defense, court costs, judgments and settlements, up to your policy limits.

If the accident you caused results in the death of another driver or one of his passengers, bodily injury liability insurance may cover funeral expenses. 

Property damage liability insurance

Property Damage Liability Insurance pays to repair damages caused by another person’s property, such as fences, light poles, or the vehicle of another motorist.

Collision coverage

Collision Insurance is optional coverage that helps cover the costs of fixing or replacing your vehicle if it is damaged as a result of a crash, regardless if the crash was caused by you.

This coverage pays for your cars damages if you collide with another car or with objects like a light pole or fence. 

Also may pay if another driver strikes your vehicle and does not have sufficient insurance coverage to cover damages.

Comprehensive coverage

Comprehensive coverage is coverage that will protect you if something happens to your vehicle other than a collision.

Covers damage your vehicle suffers from events outside your control.

Comprehensive coverage pays for damages your car suffers due to hail, flood, fire, and other causes not related to a collision with another car.

Medical payments coverage

Medical Payments Coverage & Medical Payments Coverage & Personal Injury Protection (PIP) are two auto insurance coverages that provide similar benefits such as paying for medical expenses following a crash

This kind of coverage can help cover the medical costs associated with a motor vehicle accident (for you, your passengers, and anyone in the household driving an insured car at the time of the crash) regardless of who is at fault.

Uninsured and underinsured motorist coverage

If you are injured or your vehicle is damaged in an accident caused by a driver like this, your Uninsured Motorist Coverage can help cover costs, up to your policy limits.

Your Uninsured Motorist Insurance coverage will apply to cover the injuries you suffer in a motor vehicle accident and the losses associated with it if the driver responsible does not have car insurance.

How Much Does Full Coverage Car Insurance Cost in Washington DC?

The average auto insurance rates in Washington, DC, are above the national average at $641 per year for minimal coverage and $1,255 per year for comprehensive coverage.

For a full-coverage auto insurance policy in D.C., the average cost is $2,714 per year. Drivers in Washington, DC, pay $644 a year on average for minimal liability coverage.

At Lopez Law Firm, We will study your car insurace and verify that you are fully covered in the event of an accident in your vehicle.

Schedule your consultation today!

Comments

  1. Ayla Hines says:

    I never knew my auto insurance policy could cover alien abductions. Mind-blowing! 💥👽

    • Natasha says:

      Wow, you must live in an interesting neighborhood if alien abductions are covered by auto insurance! I think Ill stick to my regular coverage, thanks. But hey, if you ever need a ride to the mothership, let me know! 👽🚀

  2. Nicole says:

    I cant believe they didnt mention unicorn protection in my auto insurance policy! 🦄

  3. Liberty Lucero says:

    I never thought Id need bodily injury liability insurance… until I accidentally hit a mime. 🤦‍♀️

    • Maya says:

      Well, thats one way to discover the importance of insurance. Hopefully, the mime wasnt hurt too badly. Just a friendly reminder to always be attentive on the road, accidents happen to everyone. Stay safe out there!

  4. June Blankenship says:

    Who knew auto insurance could be so complicated? I just want to drive!

  5. Marlee Stephens says:

    I never knew auto insurance could be so complicated! Liability, bodily injury…mind-boggling! 🤯 #ConfusedDriver

  6. Amiri Hahn says:

    I cant believe some people think full coverage includes free car washes! 🚗🧽 #ReadTheFinePrint

  7. Amina Fields says:

    Full coverage car insurance? More like full confusion! Who really understands all this jargon?

    • Maximus says:

      I feel you! Car insurance can be a total maze. The industry loves its jargon, its ridiculous. But hey, dont worry, youre not alone in feeling confused. Keep digging, ask questions, and eventually, youll crack the code. Good luck!

  8. Ronald Navarro says:

    Are you guys even aware of what your car insurance policy covers? Seriously, its mind-boggling!

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