Low Deductible Auto Insurance Coverages

When you purchase low deductible auto insurance, you will have to decide on which coverages you want and the amount of coverage you need. To assist your decision, we've put together this helpful guide on the basic types of coverages offered.

Car Insurance Liability Coverage: Protection for You and Others

• Liability coverage - liability coverage is the portion of low deductible auto insurance that protects you from the covered damage your car does to others and other damage for which you are legally responsible. Liability coverage will take care of the costs of your legal representation, bail bonds, and emergency services to others. To others, it will pay for damage to property, illness, bodily injury, medical bills, income loss, and death.
• Medical payments coverage - pays for "reasonable and necessary" medical treatments for bodily injuries you sustain in a covered accident, regardless of fault. Such costs might include hospital stays, funeral expenses, ambulance rides, doctor fees, surgery, etc. If you have adequate health insurance, you might consider eliminating this coverage.
• Uninsured/underinsured motorist coverage - this protects you from damage caused by motorists who are either underinsured or uninsured. This coverage of low deductible auto insurance has two sub-categories: bodily injury and property damage. Keep in mind that uninsured/underinsured motorist property damage coverage is not available in all states, including New York.

Car Insurance Property Coverage: Protection for Your Vehicle

• Collision coverage - this is one coverage on your low deductible auto insurance policy you can get away with skimping on if your car is older and doesn't have much cash value. Collision coverage will pay to repair or replace your car for damages sustained in a covered accident. However, the insurance company will only reimburse you up to the cash value of the car, which might not be worth it for some drivers.
• Comprehensive coverage - this coverage of low deductible auto insurance pays for damage to your car not caused by a collision with another vehicle, such as weather damage, theft, vandalism, fire, etc.

Additional Coverages

Additional coverage options will vary by the insurance carrier who underwrites your low deductible auto insurance policy. Typical additional coverages include towing and labor costs, tape/CD coverage, rental reimbursement, sound system, and roadside assistance coverage. Check out 5 ways to save on the next page.