The drafting of the Part A insurance contract provides for liability coverage for open risks. Therefore, all events that result in car liability are covered unless specifically excluded. Some exclusions apply to unprotected people and others to uncovered vehicles. The exclusions, which are listed in Table 14.6.Exclusions from Part A of the Personal Auto Policy (PAP 200*) can be analyzed in terms of the purposes of the exclusions presented in chapter 9.Fundamental doctrines affecting insurance contracts.
It's important to keep in mind that the minimum coverage limits are precisely those minimums. You can choose to buy coverage that exceeds those limits, which is often a good idea. Keep in mind that the more coverage you have, the more you could pay for car insurance. Car insurance can cost you money if you pay monthly premiums, but it could save you a lot in the long run if you're involved in an accident.
Knowing the difference between the different types of car insurance is important to ensure that there are no gaps in coverage that could cause you to have to pay for repairs or medical expenses out of pocket. Researching the best auto insurance companies is a good starting point when looking for your first or next policy. The statements identify you by name and address and show the validity of the policy, the premiums charged, the coverages offered, and the liability limits of the coverage. You have the option of buying coverage for your car in case of open danger by purchasing both collision coverage and comprehensive coverage (also called non-collision coverage).
Medical payment coverage is similar to liability coverage because it is offered on the basis of open risks within the car use category. While the first thing you probably think about when considering this coverage is the other person's car (and you're right), this coverage could also cover traffic signs, fences, bicycles, telephone poles, homes, and other types of property. The distinction between the two coverages can be important because collision protection generally has a higher deductible than non-collision coverage. Underinsured motorist coverage will pay the difference between the at-fault driver's liability and the at-fault driver's liability insurance limit, up to the amount of underinsured motorist coverage purchased.
Vehicle endorsement of various types can be used to offer all PAP coverages, including liability coverage, medical payments, uninsured motorists, and physical damage coverage. In that case, your property damage liability coverage would pay for home repairs, up to the coverage limit of your policy.
