The liability coverage of the personal auto policy provides protection against legal liability arising out of the ownership or operation of an automobile. The insuring agreement agrees to pay damages for bodily injury or property damage for which the insured is legally responsible because of an automobile accident.
The liability limit can be written as a single limit that applies to both bodily injury and property damage. The policy can also be written with split limits in which the limits of insurance for bodily injury and property damage are stated separately.
The insuring agreement also states that in addition to the payment of damages for which the insured is legally liable, the insurer also agrees to defend the insured for all legal defense costs. The defense cost is in addition to the policy limits.
Uninsured/Underinsured Motorist Coverage
This insuring agreement pays for bodily injury to an insured who is injured by an uninsured/underinsured motorist, a hit-and-run driver, or a driver whose insurer becomes insolvent. (Underinsured motorist coverage applies when a negligent driver has liability limits at the time of an accident, but the liability limits carried may be insufficient to pay for damages that the negligent driver is responsible for.) Some states offer coverage for property damage as part of the uninsured motorist coverage. Usually when property damage is added a deductible would apply.
Medical payments coverage
Generally covers you, household relatives and your passengers for medical expenses that result from injuries sustained in an auto accident. It also covers you as a pedestrian if you are hit by a vehicle.
Some states have Personal Injury Protection (PIP) in place of, or in addition to, medical payments coverage. This is also known as no-fault coverage. PIP can generally pay for medical expenses, funeral expenses, loss of income and other expenses for injuries or death due to bodily injury sustained as the result of a car accident.
Physical Damage Coverage’s
This coverage provides protection against the upset of your auto or non-owned auto or a collision with another vehicle or object. Collision losses are paid regardless of fault.
This coverage provides protection against any loss or damage to a covered auto resulting from loss other than a collision or upset, or a loss specifically excluded. This coverage also provides for supplemental payments for transportation expenses in the event of total theft of a covered auto or a non-owned auto. The auto must be insured for comprehensive or specified cause of loss coverage. Coverage begins forty-eight hours after a theft of a covered auto. Payments end when the auto is returned to use or the insurer pays for its loss.
Extended Transportation Expense Coverage (Rental Reimbursement)
This coverage applies when a covered auto or non-owned auto is withdrawn from use more than twenty-four hours due to a loss, other than theft. The insuring agreement agrees to pay up to the stated amount for expenses incurred in renting a vehicle. The coverage usually carries a per day limit and a maximum amount limit.
Towing and Labor Coverage (Roadside Assistance)
This coverage pays for towing and labor cost each time a covered auto or non-owned auto is disabled, up to the stated amount.