What Does Basic Car Insurance Cover?

When it comes to car insurance, there are a lot of different types and levels of coverage available. Basic car insurance is the most basic type of insurance policy you can get, and it is often the most affordable option. Most states require at least some form of car insurance in order to legally drive a vehicle, but the specifics may vary from state to state. So what does basic car insurance cover? Here is a closer look at what you can typically expect with a basic car insurance policy.

Liability Coverage

Liability coverage is the most fundamental type of coverage on any car insurance policy, and it is always included in a basic car insurance policy. This type of coverage protects you if you are responsible for causing an accident. It covers any damage you cause to another person’s property, as well as any injuries they may suffer as a result of the accident. It also pays for any legal fees associated with the accident. Liability coverage is typically split into two parts: bodily injury liability and property damage liability. It is important to be aware of the limits of your liability coverage, as any expenses above the limit will need to be paid out of pocket.

Medical Payments Coverage

Medical payments coverage is another type of coverage that is typically included in a basic car insurance policy. This type of coverage pays for the medical expenses of you and your passengers if you are involved in an accident. It pays for medical expenses regardless of who is at fault for the accident. This coverage is limited to a certain dollar amount, so it is important to be aware of your policy’s limit. Also, it is important to note that medical payments coverage does not cover any lost wages due to an accident.

Personal Injury Protection

Personal injury protection (PIP) coverage is another type of coverage that may be included in a basic car insurance policy. This type of coverage pays for medical expenses for you and your passengers regardless of who is at fault for the accident. It also pays for lost wages and other expenses such as child care and funeral expenses. The coverage limits and availability of PIP coverage may vary from state to state, so it is important to check with your insurance provider to see if this type of coverage is available in your state.

Uninsured/Underinsured Motorist Coverage

Uninsured/underinsured motorist coverage is another type of coverage that may be included in a basic car insurance policy. This type of coverage protects you if you are involved in an accident with an uninsured or underinsured driver. It pays for medical expenses, property damage, and other expenses related to the accident. The coverage limits and availability of this type of coverage may vary from state to state, so it is important to check with your insurance provider to see if this type of coverage is available in your state.

Collision and Comprehensive Coverage

Collision and comprehensive coverage are two types of coverage that are typically not included in a basic car insurance policy. Collision coverage pays for repairs to your vehicle if it is damaged in an accident. Comprehensive coverage pays for repairs to your vehicle if it is damaged by something other than an accident, such as theft, fire, or hail. Both types of coverage are optional, and you can choose to add them to your policy for an additional cost.