What are the different kinds of auto claims
If you drive a car, you need to have auto insurance. Liability is the minimum type of insurance coverage that nearly every state requires, but it is a good idea to carry other types of coverage as well. Here are some of the different kinds of auto insurance claims you might find yourself involved with.
If you are at fault in an auto accident, your liability coverage will pay for the damages to the other vehicle or personal property if you hit something other than a car, such as someone’s house. However, liability insurance does not offer coverage for your own vehicle, which is why you can benefit from having other types of insurance coverage.
Collision coverage will cover damage to your vehicle if someone else’s coverage will not pay for the damage. You could file a variety of claims under this type of insurance. For example, if you hit someone else, your liability would cover the damage to the other driver and your collision coverage would cover the damage to your vehicle. This coverage also would pay for damage to your vehicle caused by a hit-and-run driver.
Comprehensive insurance covers claims that result from something other than a crash with another car. That could include weather damage, such as from hail or or a tree falling on your car, a fire or theft. Essentially, comprehensive coverage covers most damage to your car that is caused by something other than a crash with another vehicle.
Not everyone carries car insurance even though the law requires them to, and if you get hit by such a person, you could have a hard time getting your car fixed. If the person at fault in your accident has no insurance, your insurer likely will have to cover the damage and then go after that person in court to try to get reimbursed. If you carry uninsured motorist coverage, it will make everything easier, because your policy will automatically cover you if you are hit by someone who does not have insurance or whose insurance has lapsed.
There are many other types of claims you might want to make under your auto insurance policy, and many of them may not be covered unless you seek special coverage or a rider to your existing policy. If you are in an accident that disables your car, you may need a tow, in which case you would hope your policy has towing coverage, but most don’t unless you specifically add it. The same goes for a situation in which you need a rental car because your car is being fixed. If there isn’t another driver at fault who is paying for it, you could be stuck paying the cost out of pocket unless you have specifically paid to have rental car reimbursement.
Car insurance is complicated, and it is important to understand what your policy will and will not cover so you can weigh the cost vs. benefit of the different types of coverage.