What Your Auto Insurance Really Covers

Driving gives us freedom, but it also comes with responsibility. Auto insurance is your important safety net on the road. But when you look at your policy, do you ever wonder, “What does all this actually cover?”
At Glick Insurance Agency in Beachwood, Ohio, we help people in the surrounding communities understand their car insurance. Let’s make sense of what your auto insurance actually covers, in simple terms.
The Main Types of Auto Insurance Coverage
Think of your car insurance policy as a collection of different protections. Each part is designed to help you in specific situations.
1. Liability Coverage: Protecting Others
This is the most fundamental part of your policy, and it’s required in most states. Liability coverage steps in when you are at fault for an accident.
- What it covers: It pays for the costs associated with injuries to other people (like their medical bills and lost wages) and damage to their property (like their car or a fence) that you caused.
- Think of it like this: If you accidentally hit someone else’s car, your liability coverage helps pay to fix their car and cover their injuries. It doesn’t cover your own car or your injuries.
2. Collision Coverage: Protecting Your Car in a Crash
This coverage is all about your own vehicle. Collision coverage helps pay to repair or replace your car if it’s damaged in an accident, no matter who was at fault.
- What it covers: Damages from hitting another car, a tree, a pole, a pothole, or even if your car rolls over.
- Think of it like this: You hit a parked car. Your collision coverage would help pay to fix your car. (The parked car’s damage would be covered by your liability!)
3. Comprehensive Coverage: Protecting Your Car from “Other Stuff”
Often paired with collision, comprehensive coverage protects your car from things other than a collision with another vehicle or object.
- What it covers: Damage from events like theft, vandalism, fire, natural disasters (hail, floods), falling objects (like a tree branch), or even hitting an animal (like a deer).
- Think of it like this: A tree falls on your parked car, or your car is stolen. Comprehensive coverage would help pay for the damage or replacement.
Other Important Terms to Know:
- Deductible: This is the amount you agree to pay out of your own pocket for a covered claim (like collision or comprehensive damage) before your insurance starts paying. For example, if your deductible is $500 and your car has $2,000 in damage, you pay the first $500, and your insurance pays the remaining $1,500.
- Uninsured/Underinsured Motorist Coverage (UM/UIM): This coverage protects you and your passengers if you’re involved in an accident with a driver who has no insurance, or not enough insurance, to cover your damages or injuries. It’s an important layer of protection.
Getting The Right Coverage Matters
Knowing what your auto insurance policy covers helps you choose the right protection for your needs and avoid surprises after an accident. It gives you peace of mind every time you get behind the wheel.
Have questions about what auto insurance is best for you?
Our friendly team at Glick Insurance Agency is here to help! We make understanding car insurance easy and help drivers in Beachwood, Ohio, and the surrounding areas find the perfect plan.
Get your personalized auto insurance quote today!