It is easy to be confused by all of the different types of auto insurance coverage offered by the myriad insurance companies out there. Some states require certain types of coverage, and it is not always clear the best way to be as economical as possible in your purchase. If you are looking to educate yourself on the different kinds of insurance available, read on!
Personal Injury Protection
Personal Injury Protection (PIP) covers your own medical expenses as well as anyone else in your car at the time of the accident, regardless of who is at fault for the accident. While not available in all states, it is mandatory in 16 states, and it is nonetheless an important coverage to consider, as medical expenses can increase exponentially depending on the severity of the accident. In some states it is known as medical payment insurance or no-fault coverage.
Bodily Injury Liability
Bodily Injury Liability becomes important when you are found to have caused the accident, and there is physical injury to another party. This kind of insurance does not cover you or those in your car at the time of the accident. This type of coverage will pay for medical bills, lost time at work due to injury, rehabilitation, physical therapy, funeral costs, legal representation, as well as possible pain and suffering of the accident victim.
Property Damage coverage applies to accidents in which you damage the property of others. Some states require minimum property damage insurance, and you can choose to buy additional coverage over that minimum to whatever level you desire—your choice will affect your premium.
This type of insurance will often include a deductible, which helps to pay for damage to the property of others. Since paying for these costs is very expensive, this relieves you of the burden of paying solely out of your pocket. Property damage insurance covers not only other cars, but all kinds of different property such as a house or fencing.
In situations other than a collision or other type of wreck, you may find comprehensive coverage quite helpful. Comprehensive insurance is commonly known as full coverage, as opposed to collision coverage. It applies to all of the possible things that may happen to your car that you might not expect. Weather damage, theft, hitting an animal on the road, fire, falling tree branch, natural disaster, glass damage, and hail are all examples of what is commonly covered under comprehensive insurance. If your budget allows it, this is a great option to take under consideration, especially if your car is not easy to replace.
Uninsured Motorist Coverage
States require that every driver is covered by insurance; however, not all drivers do have insurance. Some drivers may allow their insurance payments to lapse or may refuse to purchase insurance and drive illegally without it. Uninsured driver's insurance will help pay for your car repairs and medical bills if the person who caused the accident is not insured or is under-insured.
You should keep in mind that there are often two types of uninsured motorist coverage-- bodily injury and property damage. Both types of coverage are important since a driver can be held legally responsible for the payment of your expenses, but they may not have insurance or have the available funds to pay you. Also, some drivers know that they do not have insurance and will flee the scene of an accident, leaving you with damages that were not your fault but still need to be repaired.
Hopefully you have become more educated on the types of insurance available to vehicle owners. Remember that it is important to be covered not only for yourself and those in your vehicle, but also for any other drivers out there who you may be unfortunate enough to affect with your driving. To learn more about your auto insurance options, try visiting http://www.collinginsurance.com/.