Reader’s Question:

I live here in Washington, DC and even though I have auto insurance for a long time, there are some things that I don’t understand. What does it mean when you buy third party coverage for auto insurance? Also, would my auto insurance rates be affected if I don’t bring my policy with me all the time?

Alicia

Washington, DC

It would not affect your auto insurance rates if you don’t bring your policy with you all the time. But this is highly advisable to do since you have to show it when it is asked by a police officer no matter where it was issued or which state you live in.

Third party cover only in Washington, DC auto insurance means that it will not cover you for personal injury. In the event that you have injuries or you are hospitalized because of a vehicular accident that you caused, you have to pay for your own bills in the hospital. Likewise, you will cover all the damages sustained by your vehicle. If you have other types of coverage such personal injury protection (PIP), this will cover your own medical expenses and collision coverage on your auto insurance will pay for the repairs on your vehicle. These are optional types of coverage so it would be your own choice if you buy them or not. But you have to take into account the possible costs that you have to pay if an accident happens.

If the vehicle that you own is not worth much, then you don’t need collision coverage; and you won’t probably need comprehensive coverage on your auto insurance as well which is for damages caused by things other than accidents such as flood, storm, vandalism and theft.