If you operate a vehicle in Salt Lake City it is very important (and legally required) to have adequate insurance. Without insurance if you have a car accident you may face steep repair costs in an auto body repair shop, a hospital or a court room. The following is a brief and general overview of typical types of insurance coverage available for vehicles in the United States. Keep in mind, terms of specific policies will vary between different insurance providers and the laws governing insurance coverage also differ from state to state.
Bodily injury liability provides coverage for damages to another person’s physical body resulting from a car accident. Typically, a bodily injury insurance will cover medical costs and tort liability up to a limit set by the policy. Many states require bodily injury coverage for all vehicle operators.
Collision insurance will cover losses related to collisions with other vehicles and is optional in most circumstances. Collision insurance covers the cost of repairs or replacement costs if the vehicle is totaled.
Comprehensive coverage covers losses that result from theft, fire, flood, vandalism or other causes not associated with a collision.
Liability or “casualty” insurance covers bodily injury or property damage caused by a car accident for which the insured driver is responsible. This coverage will cover direct expenses (repair and medical bills) as well as tort liability.
Loss of Use
A loss of use policy will provide monetary reimbursement for costs associated with rental expenses while your vehicle is being repaired provided the damage being repaired was covered by the policy.
Property Damage covers damage to another person’s property. This can apply to a vehicle or other structures located on their real property damaged in an accident (e.g. a mailbox or fence).
Uninsured or Underinsured Motorist Coverage
Uninsured motorist insurance covers losses in situations where the party responsible or at fault for damages resulting from a car accident does not have insurance or has insufficient insurance to cover the loss. Uninsured motorist policies typically cover costs associated with vehicle repairs as well as medical bills for the insured.