As a responsible driver, you promptly pay your car insurance premium every month, but do you fully understand what you’re actually buying or exactly what you’re paying to protect?

Most folks think auto insurance pays to fix their car in case of an accident. That’s correct of course, but the entire truth is that you car insurance policy covers you and your household members for much more just your car.

In fact, when you buy car insurance, only two parts of the policy are intended to protect your vehicle; Comprehensive and Collision coverage.

So, whether you insurance is up for renewal, or whether you’re seeking new insurance coverage, it’s important to understand the many options that are involved in seeking the coverage that’s right for you.

That’s why I’ve collected key information defining the various options you’ll want to consider when you’re ready to get auto insurance quotes that you can print out and keep handy when you begin shopping for new car insurance coverage.

Here are some simple explanations of Comprehensive and Collision insurance, as well as the other coverage options a typical automobile insurance policy provides:

Comprehensive Coverage
Comprehensive coverage pays to repair your car from hazards like having your car catch fire, or when you’ve parked at the shopping mall and find upon exiting that your car has been stolen. Comprehensive also covers your car should you emerge from the mall to find that someone has used a key to scratch your finish. Your car insurance carrier also may consider covering things such as a collision with a deer under comprehensive. Comprehensive will also cover you for windshield damage from a flying stone or bird strike.

Collision Coverage
Collision Damage coverage pays for physical damage to your vehicle. Regardless of whether an accident is your fault or not, your carrier will pay to repair your vehicle – minus the deductible you agreed upon when you purchased your policy.

Property Damage Coverage
Property damage coverage pays for damage you have caused in the event of an at-fault accident. The maximum amount of Property Damage the carrier will pay for is determined by the limit you agreed to when you purchased your policy. Property damage can include damage to another car or other property like a home owner’s back yard fence or a utility pole. The state minimum in most states is $5000. Many carriers also offer Property Damage limits that pay as high as $100,000.

Liability Coverage
Another insurance option which covers the driver and occupants of other cars involved in an accident that is your fault is Liability coverage. Liability coverage pays the medical bills for the occupants of the vehicle your car hit or that was determined to be not-at-fault. Again; the maximum amount paid by your insurance company is determined by the limit(s) you agreed to purchase. The minimum in many states is $15,000 per person or $30,000 if more than one person is injured.

Uninsured and Underinsured Motorist Coverage
What if you are involved an automobile accident and the other driver is at fault? And, to make matters worse, what if the other driver has no auto insurance coverage or has coverage, but may not have a sufficient insurance limit to pay for your vehicle or damaged property? Making matters even worse, let’s say you don’t have Comprehensive and Collision coverage on your policy to pay for repairs to your car. Purchasing Uninsured Motorist (UM) and Underinsured Motorist (UIM) may make a huge difference in making you whole again. Depending on the state you live in and that state’s laws, UM and UIM can be accessed to pay for the damage to your car and/or Medical bills if the at-fault driver has insufficient insurance coverage or no coverage at all.

Additional Coverage Options
There are many other coverage options available for purchase within an auto insurance policy as well. For a small additional monthly premium, coverage for Loss of Income, Accidental Death, Rental car and Towing are available.

If, after reading this, you have any further questions regarding what coverages belong in your auto insurance policy, I invite you to call me personally at at 1-800-807-0762 ext. 206.