Liability insurance is one of the coverages that the State of Virginia requires every automobile registered in the State. The State requires that an owner keep at least $25,000 per person, $50,000 per accident and $20,000 per incident of property damage. Higher limits are most often purchased. Liability on an auto policy works very much the same way homeowner's liability works except that liability is what most often responds to provide coverage in an accident.
Collision coverage is what responds when you damage your covered automobile in an accident. After the deductible, the insurance will pay the amount it costs to put your vehicle back in operating condition as it was before the accident.
Comprehensive coverage fixes damage to your covered automobile as the result of something other than an accident. Take for example the rock hitting the windshield while you are driving down the road. This would be paid for from the comprehensive portion of the policy.
Deductibles range and vary, but most often you should ask how a higher deductible affects the rate. The biggest mistake people make about this coverage is to take the "no deductible" option. It is a mistake because, often they never make a claim and yet they are paying more money each year to never use the coverage. Where, if they had selected the higher deductible they could have been saving money each year.
Another interesting part of the comprehensive coverage now offered by most companies is the free repair of windshield glass. When a rock hits the windshield and causes a "star", you simply contact your agent and ask about windshield repair. The criterion for most windshield repair companies is that the "star" not exceed six inches. If it does not, and it can be repaired, the company will almost always pay 100% of the cost. The companies decided this was prudent. They save money by not having to replace an entire windshield. The cost to the company to repair a windshield "star" is about $60.
Uninsured motorist is the other coverage required by the State. In most cases, the limit you select for your liability is echoed by this limit. In other words, if you select $50,000 person, $100,000 per accident and $50,000 of property damage for the liability limits, in most cases these would be reproduced as your uninsured automobile liability insurance limits.
Uninsured motorists liability limits protect the public from those individuals who fail to purchase the required State limits of insurance. In the event that you are involved in an accident with someone who does not have insurance and you have damage and injuries, your uninsured motorist liability coverage would respond and correct everything.
The portion of this coverage that is interesting is in the "mysterious parking lot door dink." Every car eventually gets one. That spot where someone next to you opens their door just a little too hard and put that's beautiful mark in your car which detracts so much from the look. Well, this type of claim is actually paid out of uninsured motorists coverage, with a $200 standard deductible. Since you did not see who did it and there is no evidence to find the other operator, it comes from your insurance and is fixed.
Medical payments are one of the most fantastic and underused portions of the auto insurance policy. Medical payments are a no fault automatic coverage for injury. It responds anytime someone in the vehicle is injured. It does not have to be the owner of the car and an accident does not have to occur. The most amazing things about medical payments is that they stack for most companies. That is, if a person owns three cars each with $5,000 of medical payments, they have the potential actual coverage of $15,000 instead of just the $5,000.
Rental reimbursement coverage provides a selected amount of coverage to get a rental vehicle when a covered loss occurs. Again, this coverage generally has a preset limit per day and/or per month. Limits usually range from $300 to $600 per month and a daily limit of $10 to $20. Large variances occur with this coverage and the limits available through different companies.
Towing coverage provides coverage when you have a covered loss and need your vehicle towed away form the scene. The coverage generally has a maximum amount that will be paid in the neighborhood of about $75. You select this amount, if you choose this coverage, when you complete an application.