What does your car insurance cover? You know how important it is to have auto insurance. Not only is it required by the Canadian government, but it is the security that you provide yourself with whenever you are out on the road. Some people think that getting basic car Insurance coverage is more than enough. These are the individuals who believe buying car insurance is an easy way of following the law. After all, without car insurance, the law technically disallows you to take your car out.
And then, there are those who take their car insurance policy seriously that they carefully look into what the essential coverage include. When the primary auto insurance coverage is broken down, it may include these:
•   Bodily Injury Liability
This is the basic coverage that insures the injuries that the designated driver or the policyholder causes someone else. The family members listed as the beneficiaries are also covered by the insurance whenever the car is being driven by someone the policy owner has designated. It is important to consider how much the liability coverage is, because if you get involved in the accident and get sued for it, you may need more than just the basics to be able to settle.
•   Personal Injury Protection
This is the coverage included in the policy that ensures all the medical treatments required by the driver, passengers and the policyholder of the car. Medical payments can be very expensive and recovery time could take a while; thus, this is the protection that you need to make sure you’ll have enough money to live by. Also, the personal injury protection may cover funeral costs. It is best to ask your insurance provider about the specifics this protection may include.
•   Property Damage Liability Insurance
This is the coverage that protects the costs (whether you are driving or someone else is driving the car for you) that the accident may have caused another person’s property. Usually, it includes the money needed to get the other car fixed, but it may also include the money required to repair the lamp post, fences, buildings and other structures that the car may have hit during the accident.
If you are thinking about getting less insurance coverage because you think it’s just overspending, you better think again. Being an underinsured motorist could put you in a lot of trouble and could cause you to lose more than what you’re financially prepared for.