Auto Insurance: Understanding you liability coverages

   Your auto insurance policy can be the first line of defense in covering your financial exposures in the event of an auto accident. The various areas of coverage on your auto policy extend coverage to very different areas of financial exposure. Bodily injury coverage  is what most people think of when they think of  the liability coverage on your car insurance policy. This portion of your car insurance policy is coverage that provides protection in the event that someone is subject to an injury resulting from your participation in an
accident.
   The areas of coverage on your car insurance policy include but are not limited to uninsured, underinsured, and medical payments. Uninsured and underinsured bodily injury are coverage areas that are often overlooked or not explained when a new policy is purchased or comes up for renewal. These areas of coverage award coverage to the party not at fault in an accident given that the other party does not carry an adequate coverage limit or possibly no coverage at all. In effect it is a liability coverage that covers the car insurance policy owner instead of another party. It is of paramount importance that attention be paid to these separate limits on your auto insurance policy; because if it were to ever happen that you would need to rely on these areas coverage you  will be thankful a comprehensive limit was put in place.