What type of coverage is included in auto insurance policies?

Auto insurance policies in Maryland typically provide coverage for liability, personal injury, and property damage for the policyholder. Liability coverage protects the policyholder against financial loss, if they are found to be legally liable for an accident causing injury or property damage to another person. Personal injury coverage pays for medical expenses for the policyholder, as well as any passengers in their vehicle, in the event of an accident. Property damage coverage helps to cover costs associated with damage to the policyholders vehicle caused by an accident. Some auto insurance policies also offer coverage for other items such as uninsured/underinsured motorist coverage, rental reimbursement, towing, and labor costs. Uninsured/underinsured motorist coverage protects the policyholder in the event of an accident caused by an uninsured driver. Rental reimbursement coverage helps the policyholder pay for a rental vehicle while their own vehicle is being repaired due to an accident. Towing coverage pays for towing costs if the policyholder’s car breaks down, and labor coverage pays for labor costs associated with the repair of the policyholder’s car. It is important for drivers in Maryland to understand what type of coverage their auto insurance policy provides in order to be sure they are adequately protected.

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