At Insurance Connection USA, We pride ourselves on not only being a leading provider of quality Auto insurance coverage, but also a wealth of knowledge to anyone who may fear the unfamiliarity of the insurance buying process. Thanks to our friends at Travelers Insurance, we’ve put together 3 scenarios depicting the different types of coverage that make up an auto policy* Knowing these terms and their meaning can help you understand not only what it is your vehicle is covered for, but what isn’t covered and leaving you exposed for risk… Scenario #1 A tree falls on your car during a thunderstorm, causing major damage Here is where Comprehensive Coverage proves its value. You’ll pay your deductible – let’s say $1,000 – and then your comprehensive coverage pays for the rest of the bill. if your car is considered a total loss, your insurance will cover the actual cash value of the car for what it’s worth today, minus that $1,000 deductible. Scenario #2 Your car collides with a stopped car at an intersection. Both cars are damaged but no one is hurt. Your Collision Coverage covers the repairs on your vehicle, minus the deductible. if your car is considered a total loss, you’ll get the actual cash value of the car, minus the deductible. If you’re liable for the damage to the other vehicle, your Property Damage Liability Coverage provides coverage up to the limit. Scenario #3 You’re driving alone when your vehicle collides with a car carrying three people. Everyone sustains injuries. As in scenario #2, your Collision Coverage covers the damage to your car and your property damage liability covers damage to the other car up to your property damage liability coverage limit. Where it’s available, PIP – Personal Injury Protection – may pay covered medical expenses up to the limit of the policy, regardless of who was at fault in the accident. if the other driver is liable, but has no insurance, your Uninsured/Underinsured Motorist Coverage could provide protection up to the limits of your uninsured/underinsured motorists liability limit. If an injured person sues you, your Bodily Injury Liability provides your defense and, if you’re found responsible,that same coverage pays your damages up to your bodily injury liability limit. *Not all Auto Policies are the same, coverage may vary according to individual policyholder