What Is Covered by a Basic Auto Insurance Policy?

Driving without automobile insurance is a risky proposition. An accident can happen within the blink of an eye, and as a result, a car owner can instantly be facing a mountain of medical bills and a potential lawsuit. Fortunately, there are many automobile insurance options on the market for today's car owner. Here's a look at what coverage options are available for basic auto insurance policies.

Uninsured or Underinsured Motorist Coverage

This particular type of automobile insurance covers any damages caused by an uninsured driver of another car. It will also cover any medical costs because of damage caused by an uninsured driver. If the policyholder is involved in an accident with an underinsured driver, it will cover any medical bills or damages that the underinsured driver's policy cannot cover.

Comprehensive Physical Damage Coverage

This insurance option will cover any damages (to the policyholder's car) that do not result from an accident with another car. Typically, this insurance policy option will cover damages caused by fire, vandalism, hail, theft and many other causes.

Collision Coverage

The collision coverage option will cover any expenses related to damage that occurred as a result of an accident with another car or object. Collision coverage will take care of the expenses, regardless of who was determined to be at fault. Collision coverage will cover any drivers who have permission from the policyholder to drive the car.

Personal Injury Protection

Personal injury protection will cover any medical expenses that result from an accident with another car. It will also cover any passengers that were in the car at the time of the accident. In some instances, personal injury protection will also cover family members who were riding in another person's car while involved in an accident.

Property Damage Liability Coverage

The property damage option covers any damage to another person's property by the policyholder's car. The property can be another person's car, but it can also be a fence, a building, a lamppost or any number of things. It is important to note that this insurance option does not cover the policyholder's car or his or her property.

Bodily Injury Liability Coverage

Bodily injury liability coverage is probably the most important automobile insurance option. It covers any costs or claims against the policyholder for medical expenses, damage to a car and even death. Bodily injury liability automobile insurance also covers any other passengers that were in the car at the time of the accident.

Car owners should check with their state to see what is required in an automobile insurance policy before signing up. Some of these insurance options are required in certain states and will be bundled in the basic auto insurance policy package.