Auto Insurance USAA: Types of Coverage
Here’s a description of some of the more common types of automobile insurance coverage. Because each state has its own laws concerning the details of insurance policies, this is pretty general information.
Liability – Auto Liability covers the damage if you are responsible for an accident that causes injury to another person, another vehicle or other property. Bodily injury liability pays for medical expenses, pain and suffering and lost wages. Property damage liability pays for repair or replacement of damaged property. Liability insurance usually also pays for legal defense and court costs.
Personal Injury Protection (PIP) – PIP covers reasonable and necessary medical expenses due to an accident for the persons covered in the policy. It may also pay for lost earnings and funeral expenses.
Medical payments – Available in almost every state, this coverage pays medical and funeral expenses related to an accident for the covered persons.
Collision – Collision insurance covers the damage to a covered vehicle caused by a collision with another vehicle or object. A deductible clause is required to be part of this coverage.
Comprehensive – This coverage pays for damage to the insured vehicle not caused by a crash, For example, damage done by fire, theft, vandalism and natural causes such as hail, flood, hurricanes and earthquakes.
Uninsured motorist – This pays for damages caused by someone who is not insured for liability. Depending on your state, it may or may not pay for property damage. Underinsured motorist coverage pays for damages caused by someone who has insufficient liability protection.
Rental reimbursement pays for renting a car is case your vehicle is disabled because of an accident. And emergency road service insurance covers the cost of being towed as a result of a breakdown.
Like I said, this is general information. The particulars will vary from state to state.
October 23rd, 2007 at 11:01 am
USAA was a great company until I moved back to their home state of Texas. One year after being in the state they said they were changing the way they calculate their rates and I saw as much as a 40% increase on one of my vehicles. I even had an increas of 38 % on my camper which I only use on occassion. If you can get insurance some where else I would seriously consider doing so. I will be changing my provider at my next renewal.