Auto insurance can be overwhelming when having to choose between so many types of coverages. You may have questions like what coverages are right for me and my family? Are we required to have specific coverages in the state we live in? Understanding what types of auto coverages there are can help you decide which ones you need to protect you and your loved ones.
First, each state does have their own laws that govern the minimum car insurance coverage required by drivers to legally drive. Also, states vary on the different limits required for liability coverage and some require coverages like medical payments and personal injury protection (PIP). To see the requirements and limits for each state visit the Insurance Information Institute.
Types of Coverages:
· Bodily Injury Liability: Bodily Injury (BI) liability covers costs associated with injuries and death that you or another driver cause while driving your car.
· Property Damage Liability: This coverage will reimburse others for damage that you or another driver operating your car causes to another vehicle or other property, such as fence, building, or utility pole.
· Comprehensive Coverage: Comprehensive coverage helps cover you when your vehicle is damaged without being involved in an auto accident. Some common examples are theft, a deer jumping in front of your car while you are driving, a tree branch falls on your parked car, or a chip or crack in your windshield. Depending on your insurance this coverage may require for you to pay your deductible, which is the amount you will have to pay out of pocket before your insurance carrier reimburses you for a covered claim.
· Collision Coverage: Collision coverage helps cover the costs to repair or replace your vehicle when you get into an accident with another vehicle or other object, minus the deductible. This coverage only applies to vehicle damage and not medical bills or damage to another person’s auto or property.
· Uninsured Motorist Bodily Injury Protection: Covers injuries that you and your passengers in your auto suffer when the at-fault driver does not have any auto insurance (often by a hit-and-run). This coverage includes medical expenses, lost wages, and pain and suffering.
· Underinsured Motorist Bodily Injury Protection: Covers you when the at-fault driver does not have enough insurance to pay your bills.
· Uninsured/Underinsured Motorist Property Damage: Pays for your vehicle’s repairs or a replacement car if you are hit by someone without any or enough insurance coverage. This coverage is not available in every state.
· Medical Payments Coverage: This coverage pays for the treatment of injuries to the driver and passengers of the policyholder’s car.
· Personal Injury Protection (PIP) or No-Fault Insurance: Provides reimbursement for medical expenses for injuries to you or your passengers regardless if they have health insurance or who is at fault for the accident.
Contact Paroubek Insurance today and learn more about what auto coverages, limits and deductibles are best for you and your family and have the peace of mind you need knowing you are covered.
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