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AAA World Article

Insurance Advisor

Do You Have the Right Auto Coverage?

AAA World Article

To help protect you and your assets, it’s important to understand how much and which types of auto insurance coverage you would need to recover financially from a vehicular accident. The following are five components of auto insurance coverage that every driver needs to know:

  • Liability coverage—covers the other party if you’re responsible for the crash
  • Comprehensive coverage—provides reimbursement for damage caused by something other than a collision, such as hail, a fallen tree or vandalism
  • Collision coverage—covers physical damage to your insured vehicle caused by a collision, regardless of fault
  • Uninsured and underinsured motorist coverage—reimburses the policyholder, or a covered family member, if he or she is the victim of a hit-and-run incident or an accident caused by an uninsured or underinsured driver
  • Medical payments—pays for the treatment of injuries to the driver and passengers of the policyholder’s car. 

You also may want to consider buying a personal umbrella policy that adds protection by paying when your underlying coverages are exhausted.

Once you have the coverages you need, choose a deductible, which is the amount of money you pay on a claim before the insurance company reimburses you. Typically, deductibles are $500 or $1,000; the higher your deductible, the lower your premium.

Finally, review your auto insurance whenever something changes in your life that might affect your coverage, such as buying a new or used vehicle or adding a new driver to your household.

To learn more about protecting yourself with the right auto insurance, call 877-422-2477, log on to AAA.com/Insurance, or visit a local AAA Store.


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