Every U.S. state has some sort of law about auto insurance. Even if you secure the bare minimum coverage, you should know about the benefits of additional coverage or other types of coverage.
Typically required by law is Auto Liability Coverage. If you are at fault in an accident where someone was injured or another's vehicle or property was damaged, Auto Liability steps in. The 2 categories that it covers are (1) Bodily Injury Liability and (2) Property Damage Liability. Bodily Injury Liability includes expenses for medical needs, lost income, pain and suffering and other damages. Property Damage Liability covers property that is damaged. Auto Liability Coverage also pays for attorneys and court costs. There are various amounts you can purchase. An example of the minimum coverage is a 25/50/15. This equates to up to $25,000 coverage per person that is injured, up to $50,000 per the entire accident and up to $15,000 to cover property damage.
If you purchase an auto with a loan, the loan institution can require "Comprehensive & Collision Insurance". Comprehensive insurance comes in to play when your vehicle has been damaged because of reasons other than a collision or rollover. It pays for damage to a vehicle or loss of the vehicle. Examples of this type of damage or loss include theft, vandalism, hitting a deer, flooding, wind, hail and fire.
Collision Insurance coverage pays for your own vehicle in a collision accident with another vehicle or object or if you have a vehicle rollover.
Personal Injury Protection, aka PIP, pays for medical expenses in the event someone is injured in your vehicle. It typically covers reasonable medical expenses and treatment. Sometimes, it can also include lost income, rehabilitation, funeral expenses and more.
Uninsured Motorist and Underinsured Motorist protect you when you have a collision with a person without auto insurance or an insufficient amount of auto insurance. So if you are in a collision caused by the other driver and the other driver does not have Liability Insurance, this auto insurance coverage goes toward your medical expenses and damages to the vehicle or property. This type of policy varies state to state. Underinsured Motorist also varies state to state and pays you if the other driver does not have enough Liability Insurance to cover your damages and injury.
There are even more types of auto insurance coverage available that offer more or different protections. Touch base with your auto insurance agent to learn more about protecting yourself in the event of an auto accident or other causes of damage to your car or persons.
Typically required by law is Auto Liability Coverage. If you are at fault in an accident where someone was injured or another's vehicle or property was damaged, Auto Liability steps in. The 2 categories that it covers are (1) Bodily Injury Liability and (2) Property Damage Liability. Bodily Injury Liability includes expenses for medical needs, lost income, pain and suffering and other damages. Property Damage Liability covers property that is damaged. Auto Liability Coverage also pays for attorneys and court costs. There are various amounts you can purchase. An example of the minimum coverage is a 25/50/15. This equates to up to $25,000 coverage per person that is injured, up to $50,000 per the entire accident and up to $15,000 to cover property damage.
If you purchase an auto with a loan, the loan institution can require "Comprehensive & Collision Insurance". Comprehensive insurance comes in to play when your vehicle has been damaged because of reasons other than a collision or rollover. It pays for damage to a vehicle or loss of the vehicle. Examples of this type of damage or loss include theft, vandalism, hitting a deer, flooding, wind, hail and fire.
Collision Insurance coverage pays for your own vehicle in a collision accident with another vehicle or object or if you have a vehicle rollover.
Personal Injury Protection, aka PIP, pays for medical expenses in the event someone is injured in your vehicle. It typically covers reasonable medical expenses and treatment. Sometimes, it can also include lost income, rehabilitation, funeral expenses and more.
Uninsured Motorist and Underinsured Motorist protect you when you have a collision with a person without auto insurance or an insufficient amount of auto insurance. So if you are in a collision caused by the other driver and the other driver does not have Liability Insurance, this auto insurance coverage goes toward your medical expenses and damages to the vehicle or property. This type of policy varies state to state. Underinsured Motorist also varies state to state and pays you if the other driver does not have enough Liability Insurance to cover your damages and injury.
There are even more types of auto insurance coverage available that offer more or different protections. Touch base with your auto insurance agent to learn more about protecting yourself in the event of an auto accident or other causes of damage to your car or persons.
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