Automobile Insurance

What's in an Auto Policy?

There are six parts to a standard auto policy. Auto insurance policies may include all six coverages or only some of them. Each type of coverage is priced separately.

1. Bodily Injury Liability: For injuries the policyholder causes to someone else.

2. Property Damage Liability: For damage the policyholder caused to someone else's property.

3. Medical Payments: For treatment of injuries to the driver and passengers of the policyholder's car.

4. Uninsured Motorist Coverage: For treatment of policyholder's injuries as a result of collision with an uninsured driver. Underinsured motorist coverage can also be included in an auto policy. Underinsured motorist coverage comes into play when an at-fault driver has auto liability insurance, but the limit of insurance is inadequate to pay for your damages.

5. Collision: For damage to the policyholder's car from collision. The collision could be with another car, a light post, fi re hydrant, etc.

6. Comprehensive: For damage to the policyholder's car that doesn't involve a collision with another car. Covered risks include fi re, theft, falling objects, missiles, explosion, earthquake, fl ood, riot and civil commotion.

Most states require that drivers have certain types of coverage with minimum liability limits. North Carolina's minimum liability limits are $30,000/$60,000/$25,000.