What Does Car Insurance Cover?

There are three primary types of insurance coverage:

• Liability insurance: Covers the costs associated with injuries and property damage you are responsible for if you cause an accident.
• Collision: Covers the costs to repair or replace your damaged or destroyed vehicle after an accident.
• Comprehensive: Formally known as “other than collision,” this portion of your policy covers damage to your vehicle from causes such as auto theft and weather damage.

There are also several different types of coverage which may be available to you, including:

• Medical payments: Covers the costs of injuries for you and others in your vehicle after an accident, regardless of who was at fault.
• Personal injury protection (PIP): Similar to medical payments coverage, PIP coverage can pay your medical costs after an accident, regardless of fault. But PIP offers expanded coverage that includes coverage for lost wages.
• Rental reimbursement: Pays a certain amount daily for a replacement vehicle if yours is in the shop for repairs.
• Towing and roadside service: Provides emergency roadside assistance and towing to help you get your vehicle back on the road or to a shop for repair.

As you consider your policy needs, it is important to keep the coverage limits in mind. The costs of a severe crash can quickly exceed the limits. If that occurs, you will have to pay for costs out of your own pocket.

What Does Homeowners Insurance Cover?

• Property Damage – This is by far the biggest claim maker, which includes damage to your house and any structures on your property due to water, fire and severe storms among others.
• Natural Disasters – Homewreckers like floods and earthquakes are usually not covered by basic plans, meaning, you’ll need added coverage or a separate policy to keep your goodies protected.
• Standard Home Liability – This will cover you financially if someone is injured or their personal belongings are damaged while on your property.
• Extra Money for Living – If your house is too messed up to live in while it’s being repaired or rebuilt, most policies will pay for a hotel and other living expenses, like groceries.
• Personal Property Coverage (AKA your stuff) – This will depend on the policy. Items like furniture may only be covered up to a depreciated value, but stuff like your bling might not have any coverage and will need additional insurance.