Understanding an Auto Insurance Policy
For any driver in the state of Mississippi who is trying to make a decision on their auto insurance, the first thing they need to do is to familiarize themselves with all of the components that make up an auto insurance policy in Gulfport, MS. This will help a person determine exactly what they need for auto insurance and how much coverage they need. Knowing this will help people to save more money on all of their auto insurance costs.
Components of an Insurance Policy
The first part of an insurance policy is called the liability coverage. This part of an insurance policy is required by the state. In an at-fault accident, the driver who is at fault for the accident is responsible for the injuries and damages they caused to the other driver or their personal property. This part of the auto insurance policy also covers any costs of damages to any public property as well. Finally, if there is a lawsuit filed for the damages incurred, the liability component of the auto insurance will cover that too.
Another part of an auto insurance policy is the uninsured or underinsured motorist’s coverage. This covers a driver if they are hit by an uninsured or underinsured driver. It also protects a driver if they are a victim of a hit and run. This part of the insurance policy will cover that, as well. This is not a requirement but is usually a good idea to have and worth the additional cost.
A third part of an auto insurance policy is the medical component. This part of the auto insurance policy goes to pay all personal medical expenses, as well as any funeral expenses. A certain amount of medical coverage is not required. A person can choose whatever amount of coverage they would like. Of course, the more coverage the more the payments will be.
Finally, there is what is called the comprehensive coverage. Now, if a person has an outstanding loan on their vehicle then this is a requirement. If the car is paid for and there are no judgments against the vehicle, then a person has the option to decline the comprehensive coverage. Usually, if the vehicle is only worth a few thousand dollars then having comprehensive coverage on the vehicle is not all that important.
These are the four main components of an auto insurance policy in Gulfport, MS. Knowing what each component means will help to determine the amount of coverage for auto insurance that is needed. The goal should be to match the exact amount of coverage that is needed, so a person does not end up overpaying. For more details on auto insurance policy, contact USA Insurance Co.