Auto Insurance Guide : Types of Coverage

Types of Coverage

There are many different types of coverages available to meet your auto insurance needs. Some are required and some are optional. Here are brief descriptions of the available coverages:

Liability

Washington state requires liability coverage. This covers bodily injury and damage to property that you cause to others while using your car

Personal injury protection

This covers a limited amount of medical and hospital costs, income continuation, funeral expenses, and loss of services. Coverage limits are defined in the policy.

Medical payments

This covers medical and funeral expenses (not all companies offer this coverage). 

Uninsured/underinsured motorist bodily injury

This covers injuries an uninsured or underinsured driver causes to an insured person.

Uninsured/underinsured motorist property damage

This covers property damage an uninsured or underinsured driver causes to your insured vehicle.

Collision coverage

This covers damage to your car that is caused by a collision.

Comprehensive coverage (other than collision)

This covers damage to your car -- except by collision. For example, this covers your car if a tree falls on it or someone vandalizes it.

Emergency road service

This covers towing when your car breaks down.

Car rental expense

If you have a claim that is covered under your auto policy, this coverage pays to rent a car. Be sure to check your policy for any limitations.

Death, dismemberment and loss of sight

This pays for death and certain injuries to people named in your policy due to an auto accident.

GAP coverage

In the event your vehicle is a total loss, this pays the difference between the current market value of your auto and the amount you still owe the lender. This coverage is generally only available for new cars.

Custom equipment coverage

This covers direct and accidental loss to custom furnishings or equipment.

Many companies also offer other endorsements (additional coverage). Ask your insurance agent or broker about:

• Trailer/camper body coverage

• Snowmobile coverage

• Limited Mexico coverage

• Joint ownership coverage

• Auto loan/lease coverage

Remember to check your declarations page to verify the coverage you purchased.

A Consumer’s Guide to: Auto Insurance

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Understanding your auto insurance policy The policy

Your insurance policy is a contract between you and your insurance company. It spells out exactly what the company agrees to do in exchange for the premium that you pay. This contract is divided into two sections: a declarations page and the policy itself.

The declarations page

This section of the policy includes basic details of the agreement. It is important that you review this page to make sure all the information is correct and all the coverages you requested are included. The declarations page includes:

• Name of the insurance company

• Name(s) of the policyholder(s)

• Policy number

• Policy period

• Description of the vehicle(s) insured

• Coverages purchased

• Limits of liability and deductibles purchased

• Premium charge for each coverage

• List of forms that are a part of the policy

The policy

The second part of your insurance contract is the policy itself. This includes:

• Insuring agreement

• Definitions

• When and where coverage applies

• Conditions if the vehicle is financed

• General conditions

• Mutual conditions

• Exceptions and endorsements of the policy

Make sure you review your declarations page to verify that your policy includes the types and amounts of coverage you requested.