There are different types of auto insurance coverage, it is the simplest way to determine what you require to purchase and what you need for your policy. Minimum auto insurance coverage is required by law if you drive a car, however in order to protect your financial assets in an event of loss and damage of your properties is important to choose the best coverage possible depending on what you need.
Here are the the types of car insurance coverage that you need to know about when you plant to buy a policy:
Bidily Injury Liability (BI):
Covers you for others people bodily injuries or death in which you are responsible. It also provides you with legal defense if required. In case of a serious accident, you want to have anough insurance to cover for any lawsuit against you, so you dont risk your financial assets.
Property Damage Liability (PD):
It covers you in the event that your car demages someone elses property. It could it his car, a fence, house or anything other property damaged in the accident. This coverage also provides you with legal defense if you undergo a lawsuit. In this case is important to buy enough coverage to cover you for the damaged caused to another vehicle.
Comprehensive Coverage
covers your car and other vehicles you may be driving for losses resulting from accidents other than collision. For instance, comprehensive insurance covers damage to your car if a tree damages your car, if it is stolen, if there is a flood, fire and others. If you want to keep your premium low, it helps to make your deductible as high as you can pay for.
If you have a financed car, the company may require you to carry comprehensive coverage.
If you have a great new car, you may need to this coverage to repair or replace your vehicle in case of an accident.
Collision Coverage (COLL)
It covers damage to your vehicle when it hits or is hit by another vehicle. If you make your deductible as high as you can comforatlby pay, your premiums will be low.
Uninsured Motorist Bodily Injury (UM)
It covers you, your passengers and insured members of your household for personal injuries, death or damaged caused by an at fault uninsured or hit and run driver.
Underinsured Motorist Bodily Injury
It covers you, your passengers and insured passengers for injuries damages or death caused by negligence of a driver with insufficient insurance. If the coverage of the fault driver is not enough to cover your damages, your policy will meet the difference up to the limit of liability listed on your policy.
Uninsured Property Damage
Covers your car when property damage is sustained by an insured and negligent operator does not have insurance.
Underinsured Motorist Property Damage
Covers you when property damage is sustained by an insured and the negligent operator possesses insurance, but its liability limits by the negligent drivers and not enough to cover the damages done.
Personal Injury Protection Coverage
It covers you within the specified limits, the hospital, medical and funeral expenses of the insured person other people in his vehicle and pedestrians struck by him. Depending on your state, the covered people and amount of coverage protection may vary.
Depending on your state there are Personal Injury Protection Plans such as:
Full PIP primary
Full PIP Health Primary
Medical only PIP primary
Medical only Health Primary
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