What is Car Insurance?
Anyone who gets into a vehicle assumes a certain amount of risk. Although no one intends to be in a collision, there are thousands of auto accidents every day. Most people in Vermont will be involved in at least one, if not several, during their lifetime. Car insurance helps protect drivers from many of the financial consequences auto accidents can have.
Most car insurance policies are “package policies,” which means they combine several coverages into a single policy. In a well-designed policy, the individual coverages that are included will work together to provide robust protection from many potential risks that vehicle owners face.
What Coverages Are Included in Auto Insurance Policies?
The exact coverages that an auto insurance policy contains can vary. Nevertheless, there are many coverages that are commonly available across most policies. They include the following:
Bodily Injury Liability Coverage, which might cover injuries that people who aren’t in the policyholder’s vehicle sustain
Personal Injury Protection (PIP), which may cover injuries that the policyholder and people in their vehicle sustain
Property Damage Liability Coverage, which might cover damage sustained by another person’s property during an incident
Uninsured and Underinsured Motorist Coverage, which may cover accidents that other drivers who aren’t fully insured are responsible for
Comprehensive and Collision Coverage, which might cover damage that the insured vehicle sustains
In addition to these common coverages, a lot of policies offer optional protections that can be added