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Types of Auto Coverage
What follows is a
simplified, plain-language description of the most
common categories of auto insurance coverage and how
they may benefit you.
Bodily Injury Liability
If another person is injured because of your
carelessness or the carelessness of someone driving your
car, this coverage typically requires your insurance
company to pay the claim. The company's obligation is
limited, however, to the amount of coverage you
purchased. For example, if your liability limits are the
minimum of $20,000 per person and $40,000 per accident,
your company will pay no more than $20,000 to each
injured person and no more than $40,000 total for any
one accident.
Property-Damage Liability
This is similar to bodily injury liability except that
it covers damage to another person's property rather
than physical injuries. The company's obligation to pay
also is limited to the amount of coverage you buy.
Comprehensive
This category of protection generally requires your
insurance company to pay for damage to your car caused
by something other than an auto accident (for example,
fire, theft or vandalism). The company's obligation to
you will be limited by the amount of any "deductible"
you may have purchased. A $100 deductible means that you
pay the first $100; the company pays the rest.
Collision
Your insurance company pays for damage to your car
caused by an auto accident. Deductibles also are common
with this coverage.
Personal Injury
Protection
Your company will pay the reasonable medical expenses of
anyone in your car who is injured in an accident. Under
this coverage, it does not matter who was at fault in
the accident. You and most members of your household
need not be in a car for this coverage to apply. For
example, you also would be covered if struck by a car
while you were a pedestrian. A portion of your lost
earnings are also covered by this type of insurance. As
with liability insurance, the company's obligation is
limited to the amount of coverage you buy.
Uninsured
Motorist
If an uninsured driver injures you or other occupants of
your car, this coverage will pay your claims for
physical injuries. It serves as a substitute for the
bodily injury liability insurance that the other driver
did not have. This coverage also is limited to the
amount of insurance you buy. As with personal injury
protection coverage, payment is not limited to
automobile occupants.
Underinsured Motorist
If a driver injures you or your car's occupants, and his
liability insurance is insufficient to cover the full
value of your claims for physical injuries, this
coverage will make up the difference. Again, your
company's obligation is limited to the amount of
coverage you purchase. Like personal injury protection
and underinsured-motorist coverage, it is not limited to
automobile occupants.
Kraft & Associates
2777 Stemmons
Freeway
Suite 1300
Dallas, Texas 75207
Dallas: (214) 999-9999
Fort Worth: (817) 999-9999
Toll Free: (800) 989-9999
FAX: (214) 637-2118
E-mail:
info@kraftlaw.com
Please direct general business inquiries to:
Ms. Nita Maki, Office Administrator
nmaki@kraftlaw.com
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