Does American Auto insurance cover traffic accidents?

Yes, American auto insurance typically covers traffic accidents, but the extent of coverage depends on the specific policy and the circumstances of the accident. Liability coverage, for example, will pay for damages to other people's property and injuries to other people if you're at fault. Collision coverage will pay for damages to your own vehicle, regardless of fault. Comprehensive coverage may cover damage to your vehicle from events other than collisions, such as hail or theft. Uninsured/Underinsured motorist coverage protects you if you're hit by someone without insurance or with insufficient insurance.

It's crucial to understand the specifics of your own policy because not all accidents are covered in full, or at all, depending on factors like:

* Who was at fault: Your coverage will be applied differently depending on whether you or the other driver caused the accident.

* Type of coverage you have: Liability is the minimum required in most states, but it only covers damages you cause to others. Collision and comprehensive are optional but provide more extensive coverage.

* Policy limits: Your policy will specify the maximum amount your insurer will pay out for damages.

* Exclusions: Policies often exclude certain types of accidents or damages, such as those caused by driving under the influence of alcohol or drugs.

In short, while auto insurance generally covers traffic accidents, the details are vital. Review your policy or contact your insurance provider to understand your specific coverage and limits.