Auto Insurance Policies

One of the coverage types in auto insurance policies is for your protection if you're in an accident caused by a driver with inadequate insurance. Uninsured or underinsured driver coverage is responsible for your expenses unpaid by the other driver's insurance. For sufficient protection, it's recommended you get at least $50,000 coverage.

The medical part of auto insurance policies covers the injury treatment of you and your passengers. For many people this is unneeded coverage as it duplicates the protection in their health insurance. If that's true for you, you may want to either carry a small amount for the sake of your passengers or drop it completely if allowed by your state's law.

When an accident is your fault, property liability covers the damage done to property and bodily liability takes care of the injuries that you cause to others. If you're sued, bodily liability also handles your legal defense expenses. For adequate protection, auto insurance policies should have at least $50,000 property coverage and $100,000 per person bodily coverage.

If you're in an accident, the collision coverage in auto insurance policies pays to repair or replace your car. If your car is damaged or lost due to other causes, comprehensive pays for that. Getting good value with this type of coverage means that you get the largest deductible you can. It lowers your premium significantly and saves you money even if you're in an accident and have higher out-of-pocket costs.