Types of Auto Insurance

Understanding the different types of coverage included in your auto insurance policy can help you make informed decisions when choosing the right plan. Below are common types of coverage your agent may recommend, depending on your situation.

Liability Coverage

This coverage may help you financially if you’re found responsible for a vehicle-related incident. There are two forms of liability coverage:

• Bodily injury liability may help cover medical expenses for accident-related injuries caused by you or others listed on your policy up to the policy’s dollar limits.
• Property damage liability may help pay for repair or replacement costs if you or someone on your policy damages another person’s vehicle or property up to the policy’s dollar limits.

Georgia requires all drivers to maintain minimum amounts of liability coverage. Your agent may advise you to purchase more than the minimum required amount to help increase your financial protection.

Medical Payments (MedPay) Coverage

MedPay coverage may help pay for accident-related medical expenses for named drivers on the policy and passengers, regardless of fault. MedPay isn’t required in Georgia, but your agent may recommend it depending on your circumstances.

Collision and Comprehensive Coverages

Collision and comprehensive insurance are separate coverages that may be required by your lienholder if you finance or lease your vehicle. Your agent can help determine whether adding collision and comprehensive coverages is recommended or required for your situation.

If your vehicle is damaged in a collision with another car or object, collision coverage may help cover the repair costs. Separately, comprehensive coverage may protect you against losses beyond your control not covered by collision coverage, such as damage from natural disasters, vandalism, theft or animal collisions.

Uninsured/Underinsured Motorist Coverages

Uninsured motorist coverage may help provide financial protection in case of a hit-and-run or an accident with an uninsured third party. Without this coverage, you may be responsible for all repairs and medical bills if an uninsured driver causes damages.

Like uninsured motorist coverage, underinsured motorist coverage may help when you’re involved in an accident with someone whose insurance is insufficient to cover your property damage or medical expenses. It generally kicks in when the other driver’s policy limit is reached, helping cover the remaining balance.

Work With Your Agent to Build Your Auto Insurance Policy

Your agent can help you understand how Georgia’s minimum auto insurance requirements and insurance mandates from your lienholder may affect your insurance choices. It’s important to shop around for auto insurance by getting multiple quotes from reputable insurers.

Contact Us

Contact Paramount Insurance & Multiservice in Lawrenceville, Georgia, to compare personalized auto insurance quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.