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Personal auto insurance .
What is it and why do we have it ?
It will come as no surprise to you that car accidents happen all the time .
These result in both damage to the vehicles themselves as well as bodily injury to the people involved .
Personal auto insurance helps to cover these claims .
Let's take a look at a couple of examples one day as Mike was leaving his house for work , he looked at his watch and realized he was running late in an effort to get to work on time .
He ran a red light and crashed into a car in the intersection .
This caused significant damage to the car he hit as well as to his own vehicle .
Additionally , the driver in the other car , Michelle broke her arm and Mike got a concussion from hitting his head , sending both of them to the hospital .
Fortunately , Mike had both liability and physical damage coverage on his personal auto policy .
The liability portion paid the medical bills for Michelle as well as the cost to repair her vehicle .
The physical damage coverage of his policy paid for his own vehicle and the medical payments coverage paid for his medical bills .
It was an unfortunate accident but everything turned out .
All right , in the end , had Mike not purchased auto liability insurance , which is required by law in most states .
Michelle could have further protected herself by adding uninsured or underinsured motorist coverage to her own personal auto policy .
Now , let's look at Nicole one day when leaving her house , she noticed a very unfortunate event , her beautiful tree in the front yard had uprooted and came crashing down on her car parked in the driveway .
The car was simply undrivable .
She called her insurance agent asking what to do and she assured Nicole everything would be ok .
Nicole's policy had other than collision coverage for physical damage and the insurance company would pay for the repair .
Additionally , they would pay for the cost of a rental car until her car was repaired .
It's the job of the customer service representative to recommend adequate coverages and limits to protect their client from all potential auto claims that could arise .