At Globe Live Media we explain what a basic auto insurance policy in the US covers, so that you know how it can protect you financially in the event of an accident
If you are one of those who have considered 2023 as the best year to buy a new car in the United States, it is convenient for you to remember that any purchase of a vehicle implies, of course, the purchase of car insurance. Specifically, a basic insurance policy that protects you financially while you drive.
According to the Insurance Information Institute (III), a basic auto insurance policy offers six types of coverage for various accidents.
At Globe Live Media we explain what are the coverages of a basic car insurance policy in the US.
1- Liability coverage for physical damage
This is a coverage designed to protect the insured driver when he causes bodily harm to other people, so it takes effect even if he is driving someone else’s car and not his own.
2- Coverage of medical expenses or personal injury protection (PIP)
This coverage includes medical expenses for treatment, hospitalization, fees generated by the damage suffered in an accident and services needed by the people affected in an accident.
3- Liability coverage for damage to the property of third parties
This coverage includes the costs for damages caused to other types of property, such as poles, buildings or damages caused to public roads, as well as different structures against which you could collide due to an accident.
4- Collision or shock coverage
This is the policy coverage that covers damage to your vehicle when it hits another vehicle or a structure (such as a power pole) or turns over due to sliding down a ravine.
This part of the insurance usually goes into effect once the insured has paid a deductible.
5- Extensive coverage
This coverage reimburses expenses for other types of losses other than collisions, such as theft, fire, earthquakes, explosions, hurricanes, vandalism, and even the impact of the wagon against wild animals such as deer.
6- Coverage for uninsured motorists
This coverage will reimburse the insured user, as well as their family members, for the expenses incurred after a collision with an uninsured driver or a hit-and-run driver.