Defining Coverage Options

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Choosing from the many car insurance coverage options out there can seem daunting, but when you know what coverage you need, it can make getting what’s right for you a little easier.

Basic Auto Policy Types

The type and amount of auto insurance coverage you purchase may depend on the laws where you live. Many states require you to have a minimum amount of liability coverage for bodily injury and property damage. Certain states also require you to keep personal injury protection (PIP) coverage and/or uninsured motorist coverages. These are sometimes referred to as minimum limits policies. The basic coverages are summarized for you below, but always look to your policy for full explanation of what is covered.

Bodily Injury Liability

Bodily Injury Liability pays for medical and legal protection should you cause bodily injury to another person while operating your vehicle.

Property Damage Liability

Property Damage Liability pays for damage to another's property caused while operating your vehicle.

Comprehensive Coverage

Comprehensive coverage pays for loss or damage to your covered vehicle caused by an event other than collision, such as fire, theft, natural disaster, contact with birds or animals and vandalism.

Collision Coverage

Collision coverage pays for loss or damage to your vehicle as a result of colliding with another object, or the vehicle overturning.

Personal Injury Protection (PIP)

In states with no-fault auto insurance coverage, this pays, within state specified limits, for certain medical, hospital, funeral and/or work loss expenses incurred by you, other passengers in your covered vehicle and pedestrians if struck by your covered vehicle.

Uninsured Motorist Coverage

Pays for bodily injury and, in certain states, property damage sustained by you and other passengers in your covered vehicle in an accident for which the person legally liable does not have auto liability insurance or cannot be identified. In some states it also includes auto coverage for damages caused by at-fault drivers who have insufficient insurance to pay your claim.

Additional Coverage Options

Besides the basic auto insurance coverage, there are additional coverage options that you can choose to further protect yourself and your vehicle. Although these options usually come at an additional cost, they give drivers peace of mind on the road.

Rental Reimbursement

Rental reimbursement is coverage that helps pay for a rental car if your vehicle can't be driven due to a covered accident or loss. Typically this coverage can only be purchased if you also purchase comprehensive and collision coverage.


Covers emergency towing costs (up to the limit selected) when your covered auto cannot be driven.

Gap Insurance

After you purchase a new vehicle, its value depletes up to 30 percent in the first three months you own the vehicle. If you get into an accident, or your car gets totaled, your insurance company may not reimburse you for the full value of the vehicle. Gap coverage insures your vehicle during this period.

Medical Payments Auto Coverage

Pays for medical and funeral expenses incurred by you and certain others insured under your policy as a result of bodily injury or death caused by an auto accident.

Accidental Death

This coverage option pays a $5,000 death benefit to your beneficiaries if you were to die as a result of a covered accident in your vehicle.

If you have more questions, or would like to choose the auto coverage that fits your needs, visit one of our Direct agents at a local store, visit us online for a free quote or call us at 1-877-GO-DIRECT (1-877-463-4732).

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