Car Insurance


What is auto insurance?

 Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Auto insurance provides property, liability and medical coverage:
  • Property coverage pays for damage to or theft of your car.
  • Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
  • Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you’re financing a car, your lender may also have requirements. Most auto policies are for six months to a year. Your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium.

What Is Covered by a Basic Auto Insurance Policy?

 Your auto policy may include six coverages. Each coverage is priced separately.

1. Bodily Injury Liability

This coverage applies to injuries that you, the designated driver or policyholder, cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission.

It’s very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets such as your home and savings.  Evey car insurance policy contains different coverages. Check your own car insurance policy to find out what is covered.

2. Medical Payments or Personal Injury Protection (PIP)

This coverage pays for the treatment of injuries to the driver and passengers of the policyholder’s car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs.

3. Property Damage Liability

This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else’s property. Usually, this means damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures your car hit.


4. Collision

This coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $500 to $2,000—the higher your deductible, the lower your premium. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you’re not at fault, your insurance company may try to recover the amount they paid you from the other driver’s insurance company. If they are successful, you’ll also be reimbursed for the deductible.


5. Comprehensive

This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer.

Comprehensive insurance is usually sold with a $500 to $1,000 deductible, though you may want to opt for a higher deductible as a way of lowering your premium.

Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage with or without a deductible.

What does comprehensive car insurance cover mean?

Simply put, comprehensive coverage protects you against damages to your car that are the result of covered perils not related to a collision. Think of a scenario that could cause damage to your car that has nothing to do with striking another vehicle. In many cases, this can include: Theft. Vandalism.

What is comprehensive deductible auto insurance?

Because the loss was due to an incident other than a collision, your Comprehensive insurance can be used. If you chose a $500 deductible, you would pay the first $500 out of pocket to replace your vehicle.

What is covered by comprehensive car insurance?

Comprehensive coverage: Coverage that pays for damages to your vehicle resulting from a covered loss other than a collision, such as fire, theft, vandalism or contact with persons, animals, birds or falling objects. Call us for auto insurance car insurance .


 Dick Watts Insurance, 12200 Shelbyville Rd 112, Louisville, KY 40243  phone 502-245-3625

6. Uninsured and Underinsured Motorist Coverage

This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver. (check your state specific laws for specific coverage)

Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian. Normally in Kentucky this coverage is for bodily injury only and does not cover any property damage.

Auto Insurance and Car Insurance Coverage from the basics to other additional coverages :

Not every policy contains every line of auto insurance coverage.

Bodily Injury Liability Insurance covers injuries in the other car when you are at fault for the accidents.  Property Damage Liability Coverage covers damages to the other persons vehicle if you are at fault for the auto accident. Bodily Injury and Property Damage Liability coverage protects you if you cause a car accident. The car insurance company will pay for the other persons damages to their car and injuries in the other car. Some car insurance policies contain liability insurance coverage only.  Review your own auto insurance policy to determine which car insurance coverages are available.

Collision coverage protects you if you get  hit by a car or another vehicle. The collision coverage provides coverage for the vehicle that you own less any applicable deductible. You can choose the insurance deductible and you will pay this portion to the repair shop. A separate premium must be paid for collision coverage. Check your auto policy to determine if Collision coverage is available.

Disclaimer: This article is for informational purposely only. There is no legal advice being suggested or proffered and the author assumes no responsibility or liability for the actions taken or not taken by the readers based upon such information.  Every auto insurance policy is different, every state auto insurance policy is different. Consult your own car insurance policy for specific coverages.


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