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A typical auto insurance policy contains a variety of coverage types that protect you against different hazards. Insurers offer different options, but the most basic policies contain a few common coverage types. To help you understand what to expect, Imperial Agency in Garfield, NJ, explains what you typically get with a basic auto insurance policy.

What Coverage Does a Basic Auto Insurance Policy Have?

1. Liability

By law, all car insurance policies in New Jersey must include liability coverage that pays other drivers or property owners if you are at fault and cause injury or damage to their vehicle or other property. It also pays for any legal fees if you are sued because of the incident.

2. Collision

Liability coverage only pays to repair other people's property. To protect your vehicle against accidents, you need collision coverage. It pays to repair or replace the vehicle up to the estimated value, even if you are at fault, after the deductible amount is paid. Note that it only covers collision damages.

3. Comprehensive

Auto insurance in Garfield, NJFor non-collision damages like fire, flood, or vandalism, you need comprehensive coverage. It protects you even if the car is in storage for the winter and includes protection against theft.

4. Uninsured & Underinsured Motorist

Most basic policies include uninsured and underinsured motorist coverage, which pays out if the other driver is at fault but does not have sufficient insurance to cover the damage to the car. Your policy will then make up the difference.

With all these coverage options, a basic auto insurance policy will protect both your interests and those of other drivers. To discuss your options with an agent, contact Imperial Agency. They've been serving Bergen County and beyond for nearly 40 years. They specialize in auto, life, health, and homeowners insurance. Visit their website for more information about their policies or call (973) 546-9567 to request a quote.

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