Most jurisdictions mandate that car owners have insurance to help in case of an accident. Insurance plans cover financial losses due to personal injury, property damage, and death. The penalties for driving without insurance range from fines to loss of driving privileges.
Insurance Protection for Every Situation
Although every lawfully operated automobile in the United States must have insurance, the specifics of the policy vary by state and vehicle value. When shopping for auto insurance, it helps to have a firm grasp on the many coverage options out there. Let’s discuss a few of them.
1. Personal Injury Protection
Every state requires drivers to have liability insurance except for Virginia and New Hampshire. When you cause an accident, your liability insurance covers the other party’s damages. If you are sued because of an accident, the plan covers your legal fees and any compensation you may get.
There are two distinct forms of personal injury protection:
• If you cause an accident and hurt someone, your bodily injury insurance will cover their medical bills. The insured may get compensation for their medical expenses, emotional distress, and time away from work.
• When you are at fault in an accident, property damage liability insurance will pay for the repairs or replacement of the other party’s damaged property. It covers repairs to your vehicle, structures, fences, and utility poles caused by another motorist.
Policy limitations vary depending on the kind of liability insurance:
• The highest possible limit for individual compensation in the case of injury
• The maximum amount of coverage available for property damage
• Total coverage available for all injured accident victims
2. Bodily Injury and Property Damage Coverage
Insurance policies often include uninsured motorist (UM) and underinsured motorist (UIM) protection. If the driver that causes an accident does not have enough liability coverage to pay your costs in full, your UIM policy will kick in to help. However, uninsured motorist coverage will cover your costs if the at-fault party doesn’t have car insurance. These policies cover medical expenses, lost income due to death, vehicle repairs, burial costs, and compensation for mental anguish.
3. Medical Payment (MedPay) Coverage
No matter who was at fault for the accident, MedPay coverage will take care of the medical bills you and your passengers racked up as a result. MedPay is a viable alternative to health insurance for individuals who cannot afford it, despite its limited coverage. It complements health insurance by paying for additional costs not covered by standard policies after an accident.
4. Personal Injury Protection (PIP) Insurance
With PIP, medical bills and other accident-related costs are under full coverage, as are lost wages. Insured family members and traveling companions may benefit as well.
Most no-fault accident jurisdictions call for PIP, and it offers a few benefits over MedPay. If an accident causes the death of the driver or a passenger, the insurance will cover medical bills and burial expenses.
5. Accident Insurance
In the event of an accident, collision insurance will pay for repairs to your vehicle and any other damaged property. If you have an accident and damage someone else’s car, this insurance will pay to fix or replace it. Even though collision insurance may not be a mandate in your state, your lender still may insist on it if you take out a loan to purchase a vehicle.
6. All-Inclusive Protection
If anything happens to your automobile that is not an accident, comprehensive coverage will help pay for the repairs. It safeguards your car against an explosion, fire, theft, vandalism, and even acts of nature.
Make sure you are protected in the case of an accident or another unplanned incident by familiarizing yourself with the different types of coverage and the minimum requirements in your state. In the event of a mishap, having auto insurance will protect you from having to pay for damages or medical bills out of pocket.