18 Feb, 2021
There are different kinds of coverage that an auto insurance policy can have. Talk to an insurance agent to give you advice on the type of car insurance coverage you need to meet your needs and the needs of your state. Your policy can include the following:
Liability for Bodily Injury – This insurance will pay for another person’s injury, legal fees, or loss of wages if you are found to be at fault for the accident. Liability for bodily injury is required by most states. You should try and at least have $100,000 per person and $300,000 per accident in your bodily injury liability coverage.
Liability for Property Damage – Liability for Property Damage pays for damage that happens to someone else’s property that you are responsible for. It covers things such as cars or homes. You should put a minimum of $100,000 in your liability for property damage
Collision – Collision covers the cost of damage to your own car in an accident. Collision coverage is important to have if a car is new and valuable. It becomes less important if the value of your car is not as expensive.
Comprehensive – Comprehensive covers the cost of miscellaneous damages to your car that was not caused by a car crash like fire, hail, and theft. It will help you to pay to replace or repair your car just as long as it wasn’t caused by a car crash.
Medical Expenses – Covers the cost of medical care for you and your passengers in the event of an accident no matter whose fault it was. If you already have health insurance it may be worthwhile to skip this option.
Uninsured/Underinsured Motorist Coverage – If you were hit by somebody and have little to no insurance, your medical expenses can be covered by UM, It does not cover damages to your car though. It also covers the gap between you and the other driver’s coverage.
Personal Injury Protection (“PIP” or “No-fault”) – This coverage covers medical costs for you and your passengers. PIP can cover funeral costs, medical expenses, physical and occupational therapy, substitute services, and funds to hire contractors to finish your work.
What Happens If You Don’t Have Car Insurance?
If you’re found driving a car that is not insured, there may be many penalties at risk that are both criminal and financial. If you are stopped by a police officer for a traffic violation and they find out that you are driving without car insurance, you can get written up for failing to have the required level of car insurance. Some states can even have your car towed from the scene for failing to have car insurance.