What type of coverage is included in auto insurance policies?

Auto insurance policies typically include two types of coverage: liability coverage and physical damage coverage. Liability coverage pays for damage an insured driver may cause to another vehicle or person in an accident. This coverage includes bodily injury liability, property damage liability, and sometimes medical payments. It also helps cover legal expenses in case the insured driver is sued for damages caused in the accident. Physical damage coverage pays for the costs of repairing or replacing the insured driver’s vehicle if it’s damaged or destroyed in an accident. This coverage includes collision insurance and comprehensive insurance. Collision insurance covers the cost of repairing or replacing a vehicle after a collision with another car, object, or animal. Comprehensive insurance covers a wide range of potential damages such as fire, theft, vandalism, and weather-related damages. In New Jersey, all drivers must carry liability insurance in order to legally operate a vehicle. Minimum required limits are specific per state so it’s important to check what those are in New Jersey and make sure you have adequate coverage. You may also choose to increase the limits of your liability insurance or add physical damage coverage for added protection.

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What type of coverage is included in auto insurance policies?

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