Many drivers only carry the basic necessities for automobile insurance
coverage, which includes liability, personal injury protection (PIP),
and sometimes uninsured motorist (UM) and underinsured motorist (UIM).
There are several other types of
first-party auto insurance coverages that could help you out in the event of an incident.
Comprehensive and Collision Coverage
If you own a newer car, you may already have these as many banks and loan
companies will require you to have this coverage if your vehicle is not
paid off in full.
Collision coverage pays to repair your vehicle, or pays you what it was
worth prior to the accident if the vehicle is deemed a total loss. A total
loss is when the cost to repair the vehicle exceeds 75% of its current
value. The important part of collision coverage is that it pays out regardless
of who the at-fault party is in the accident. There is a deductible, so
your insurer will pay the difference between your deductible and the actual
Comprehensive is also an important coverage that pays for damages that
result from anything other than a vehicle accident. This includes things
like theft, vandalism, storm damage, etc. Like collision, if you choose
a higher deductible amount here, your premiums will decrease. If you own
a vehicle recognized as high theft-risk, this is one coverage you do not
want to be without.
Medical Payments Coverage
This differs from PIP in that Medical Payments coverage, or Med Pay as
you may hear it referred to, only pays medical expenses. If you have health
care coverage, check with your carrier if you are duplicating policies
here. Med Pay will cover things like surgery, chiropractic treatments,
dental visits, nursing, and funeral expenses. It may also cover you or
your family if you are struck by a vehicle while riding in someone else’s
car or walking down the street.
Rental Reimbursement Coverage and Transportation Expense Coverage
Rental Reimbursement Coverage can be important if your vehicle is out of
commission for an extended period of time or declared a total loss. This
pays for a portion of rental vehicle expenses while your car is being
repaired after an accident or suffered a comprehensive loss. Rental reimbursement
coverage typically pays a specified dollar-per-day rate.
Transportation Expense Coverage covers additional transportation expenses
like bus fare, etc., if your vehicle is being repaired after an accident
or comprehensive loss.
Towing and Labor Coverage and Mechanical Breakdown Coverage
Towing coverage pays to tow your vehicle to a repair shop. If you have membership with an automobile
club, you may already have similar coverage.
Mechanical Breakdown Coverage pays for vehicle repairs after some sort
of mechanical breakdown, not an accident. This coverage may be less than
an extended warranty through an auto dealer, so if you are looking to
buy a new vehicle, compare the costs.
Maryland Personal Attorney Assistance
In some cases, insurers may not act in their insured’s best interests.
This is known as bad faith and you may need the services of a knowledgeable
Maryland personal injury attorney. If you are having issues with your carrier and the denial of first-party
coverages, contact the Law Office of Robert R. Castro at 301-870-1200,
or visit our website at
This article has been provided by Law office of Robert Castro. For more
information or questions contact our office to speak to an experienced
lawyer at (301)870-1200.
Law office of Robert Castro.
2670 Crain Highway #411, Waldorf, MD 20601. (301)870-1200