Auto Insurance: Who And What Does It Cover?

Having auto insurance is a driver’s best defense against sudden financial responsibilities. Many unexpected things can happen on the road that can lead to financial problems. These incidents, no matter who’s at fault, will always involve large sums of money. With auto insurance, you are guaranteed financial protection from these unfortunate situations.

Almost every state legally requires drivers to have a minimum amount of car insurance, specifically liability insurance. However, being underinsured would be a grave mistake for every driver. To obtain reliable financial protection, do not settle for less coverage.
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If you’re interested in purchasing comprehensive auto insurance, here are the coverage basics that you need to know. 

Who is covered in the insurance policy?
Most people think that only the drivers who acquired auto insurance are covered in the policy. However, auto insurance policies offer more coverage than that. Here’s a list of who’s commonly covered in an auto insurance policy. 

1. The named insureds
   Named insureds are the people that are declared covered under the policy. These people are the names that are written when finalizing the insurance deal. 
   
   
2. The spouse of the named insured
   Auto insurance typically includes the spouse of the named insured under the policy, even if not declared as named insured. However, the spouse will no longer be covered by the policy if they’re no longer partners with the named insured. 
   
   
3. The relatives in the household
   If a licensed driver related to the named insured lives in the same household, they’re also included in the policy. You can apply this to relatives by blood, marriage, and adoption. 

What is covered in the insurance policy?
Auto insurance policies are made up of several components that provide different protection. After securing the basic required coverage, you now have the freedom to choose which part you want to add. Here are some of the standard components that you can look into.

1. Liability insurance
   Liability insurance covers the costs of the accident that the named insured is responsible for. There are two parts of the liability coverage, namely property damage liability (PDL) and bodily injury liability (BIL). PDL covers the damages done to the victim’s vehicle, while the BIL covers medical expenses. 
   
   
2. Personal Injury Protection (PIP)
   PIP covers the costs when the named insured sustains injuries from an accident. As long as the policy covers the accident, it can cover funeral expenses and lost wages because of the accident. PIP generally covers most medical expenses such as surgeries and other hospital bills. 
   
   
3. Collision Coverage
   Collision coverage pays for the costs of damages to your vehicle from an accident, no matter who’s at fault. Remember that collision coverage only includes the named insured and will not pay for other driver’s damages.

Conclusion
The added financial burden is the last thing a driver wants to deal with when it comes to accidents. Make sure to avoid dealing with these situations by obtaining the proper financial protection for your needs. Choosing the best comprehensive auto insurance would be your best defense against the uncertainties of the road.  

At Kapasu Insurance Services Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (760) 995-3853 or Click Here to request a free quote.