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What is Covered by Your Auto Insurance?

April 4, 2019

It is mandatory in almost every state in the U.S. that all licensed drivers carry car insurance. This insurance helps protect you, your vehicle, and any other persons or automobiles involved when a car accident occurs. There are a few main types of coverage that your policy can contain:

Two hands pointed over a car for auto insurance

Collision Coverage

In a vehicle collision, there is almost always damage to at least one of the vehicles involved. If your car is involved in a collision and needs repair, this can be very worrying as vehicle repairs can be extremely costly depending on the severity of the damage. If your vehicle is damaged to the point where the cost to repair it exceeds the actual value of the vehicle, collision coverage will ensure you are paid the value of your car when it has been totalled in an accident. This type of coverage is required if you have a lienholder, or person who has leased the vehicle to you or given you a loan to buy the vehicle.

Personal Injury Protection

It is always suggested to have personal injury protection (PIP) included with your auto insurance policy because costs associated with injury from an accident, just like vehicle repair costs, can really add up. With personal injury protection coverage, your medical bills will be paid whether or not you were at fault for the accident.

Comprehensive Coverage

This type of coverage deals with damage done to your vehicle due to factors other than a car accident. Having comprehensive coverage helps cover costs if: 1) your car gets broken into, 2) you hit a deer or other wild animal while driving, 3) your car is stolen, or 4) your car is damaged by bad weather or natural disasters.

Liability Insurance

Liability insurance is there to cover you in the event that you are in a car accident that is determined to be a result of your actions. If another person or their property is damaged when you are involved in an accident that you are at fault for, liability insurance covers the cost of repairing that property as well as the medical costs incurred due to injury at the time of the accident.

Uninsured/Underinsured Motorist Protection

As stated earlier, most states require licensed drivers to carry insurance. However, there are some states that do not, meaning you may come across uninsured motorists on the road. Another problem you may run into is one where the other driver involved in the accident is carrying a very low coverage amount that does not cover the full amount of expenses of the accident. In these scenarios, you could be left with little to no compensation for damages or personal injury if you are involved in an accident with an uninsured or underinsured driver. This type of coverage protects you from getting stuck in these inconvenient and costly situations.

It’s important to know which types of coverage you should include when you purchase a new auto insurance policy in order to be as protected as possible in case of a car accident or natural disaster. If you’re looking for an insurance agent in Carroll County to help you choose what coverages are best for you, contact the professionals at American Heritage today!

What Our Clients Say...

Over and above the time, effort and saved dollars that you put into earning our business – your careful attention to detail in getting our coverage right is what mattered the most. Thank you for educating me about the differences in coverage and for reallocating our insurance dollars to minimize our exposure while maximizing our policies.

- Eric L, President of Jeffrey Press, Inc.

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Frederick County: Frederick (21701, 20702, 21703, 21709), New Market (21774) , Mount Airy (21771), Urbana (21704), Ijamsville (21754), Walkersville (21793), Libertytown (21762), Damascus (20872), and more.

Howard County: Clarksville (21029), Columbia (21044), Cooksville (21723), Dorsey (21075), Elkridge (21075), Ellicott City (21043), Fulton (20759), Glenelg (21737), Glenwood (21738), Granite (21163), Hanover (21076), Highland (20777), Jessup (20794), Lisbon (21765), Marriottsville (21104), North Laurel (20723), West Friendship (21794), Woodbine (21797), Woodstock (21163), and more.

Montgomery County: Olney (20832), Damascus (20872), Laytonsville (20882), Silver Spring (20910), Clarksburg (20871), Gaithersburg (20878), Germantown (20876), Bethesda (20816), Chevy Chase (20815), and more.

Baltimore County: Arbutus (21227), Catonsville (21228, 21250), Cockeysville (21030, 21031, 21065), Dundalk (21222), Edgemere (21219), Essex (21221), Garrison (21055), Lansdowne (21227), Lochearn (21207), Lutherville (21093), Middle River (21220), Milford Mill (21244), Overlea (21236), Owings Mills (21117), Parkville (21234), Park Heights (21215), Pikesville (21208), Randallstown (21133), Reisterstown (21136), Rosedale (21237), Timonium (21093), Towson (21204), White Marsh (21162), Woodlawn (21207), and more.

Carroll County: Eldersburg (21784), Finksburg (21048), Hampstead (21074), Manchester (21102), Marriottsville (21104), Taneytown (21787), Union Bridge (21791), Westminster (21157, 21158), Mount Airy (21771), New Windsor (21776), Sykesville (21784), Woodbine (21797), Taneytown (21787), and more.

We also serve the rest of Maryland and the United States.