Car insurance or what is generally known as personal auto insurance is an insurance coverage policy that takes care of a wide range of aspects while you could hit the road in your car without bothering much about any unfortunate event e.g. a car accident. The broad category of coverages under auto insurance will protect you medically; if an injury occurs, financially; if theft or accident damages your car, legally; if someone files a lawsuit against you in case you damaged their car or inflicted an injury.
Fast Facts About Auto Insurance
Defy Insurance through its carrier partners offers extensive coverage options that may be available to give you peace of mind when you’re on the road. Customize your policy to get the coverage that fits your life.
Also known as “other than collision,” this coverage can help pay for damage to your vehicle from vandalism, theft, weather events and accidents involving animals.
Regardless of who’s at fault, collision can pay for damage to your vehicle if you hit another vehicle or object, another vehicle hits you, or your vehicle rolls over.
Gap insurance may help you cover the “gap” between what you owe on your car and your car’s actual cash value.
If an uninsured or underinsured driver causes an accident that results in property damage and/or bodily injury, uninsured motorist coverage may help pay for damage and medical costs for you and your passenger(s).
Bodily injury liability
If you cause an automobile accident that results in injuries, bodily injury protects you by paying for damages you may become legally liable for as a result of the accident, including medical bills and loss of income for the injured party.
Roadside Assistance coverage may even be available when you and your family household members are passengers in someone else’s vehicle, or during a roadside emergency in which your vehicle is disabled.
It depends on your state, your insurance company and the coverage options you choose. Since bodily injury and property damage liability insurance is required in most states, at a minimum your policy should cover vehicle and property damage, injury-related expenses and legal fees for other people involved in an accident you cause, up to the state-mandated policy limits.
Bodily injury liability insurance is the most important car coverage a driver can have. If you cause an accident, it helps cover accident-related expenses such as hospital and medical bills, lost wages, rehabilitation and legal fees if a lawsuit results.
Your auto insurance policy is for the car, not the driver, meaning your auto insurance will cover damages incurred by a friend or family member borrowing your car, up to your policy limit. The driver’s auto insurance serves as secondary coverage, kicking in after the limits of your policy have already been reached
Yes, your commercial auto coverage is tax-deductible. There are many situations that allow you to deduct the cost of commercial auto insurance for tax purposes when you use your vehicle for commercial or business use.
If you are self-employed, you may be able to deduct your commercial auto insurance premium under Schedule C. If you are an employee and do not receive mileage or expense reimbursement, you can use Form 2106 (Employee Business Expenses). Your best bet is to contact the IRS or a tax adviser for clarification.