Why Every Driver Should Understand Coverage Types
When purchasing an auto insurance policy you want to make sure you have enough coverage in the event of an accident. Every driver should understand the different coverage types to meet minimum legal requirements, personal injury protection, comprehensive, collision, uninsured and underinsured motorist coverage. The right car insurance coverage can significantly protect you against risk of an accident.
Most states require a policy with minimum requirements. These limits vary from state to state. Indiana mandates the minimum at 25/50/10, and Nevada is at 15/30/10. These amounts are the maximum that will be paid for bodily injury per person, bodily injuries in total and property damage (BI/BI/PD) for one accident. If bodily injuries and property damage exceed the policy amounts, the policy holder is legally responsible to pay the balance.
Personal injury protection (PIP) pays a minimum amount for injuries no matter who is at fault. This protection covers you or any passenger in your car. Loss wages, medical expenses, rehabilitation, funeral costs and survivor benefits are usually coverage in PIP protection.
Comprehensive coverage pays for damages outside of collision. Damages may include, fire, theft, broken glass, vandalism, hail, and animals. Often times policy holders believe an accident with a deer is covered under collision. An accident with an animal pays for damages under comprehensive coverage.
Physical damage to a vehicle due to an accident with another vehicle or an object is covered under a policy's collision protection. Objects include guard rails and trees. You may qualify to receive a reimbursement for related costs to repair your vehicle even if you are at fault. This does not include the deductible. If you are not at fault, your insurance provider may attempt to get your reimbursement back from the insurance company of the other driver.
Uninsured car insurance coverage provides protection to you or a family member if an uninsured driver hits you. If the accident is a hit-and-run this coverage will also reimburse you. Without uninsured motorist coverage, you would have to absorb the excessive cost to recover from this type of accident.
Underinsured protection provides coverage if you experience a total loss and the other driver's policy coverage is inadequate. Additionally, this coverage also provides the protection that you may need for a loss sustained as a pedestrian. The significant number of driver's operating without insurance places you in a hazardous situation. Underinsured auto coverage protects you from this risk.
Whereas every state may have different requirements for minimum coverage, various coverage types are available to complete a sufficient amount of car insurance coverage to protect you and your family in an accident. Consult with a state licensed agent to learn your coverage options.