What Car Insurance Policy is Right for You?
Before you purchase a car, it is important that you have the insurance you need to protect you in case of an accident. Regardless of what type you choose, you should purchase as much coverage as possible, even if it exceeds the minimum, to be sure that you are well-protected if you get in a car accident and are injured. It is also important to note that, with this coverage, you are always limited to the terms and conditions listed specifically in your policy.
Here are the different types of insurance coverage available, and what they mean for you:
What can Bodily Injury Liability (BI) do for you?
- Covers bodily injuries or death for other people, should you be responsible for their injuries
- Covers the cost of your legal defense, should another party in the accident try to sue you
- Covers any pain and suffering resulting from a serious injury
What can Property Damage Liability (PD) do for you?
- Provides coverage if your car were to damage someone else’s property—be it a car, fence, house, or any other property damaged in an accident
- Covers the cost of your legal defense, should another party in the accident try to sue you
What can Comprehensive Coverage (COMP) do for you?
- Covers your vehicle, and in some cases, other vehicles that you may be driving (rentals, borrowed cars, etc.) for any losses you experience in the vehicle, other than a collision
- These losses can include: damages if your car is stolen, or ruined due to a flood, fire, or animals.
- Under this type of insurance, the highest amount you will have to pay is your deductible, and as a result, you should only choose as high a deductible as you think you can manage paying out of pocket.
- This type of insurance is required for leased vehicles.
What can Collision Coverage (COLL) do for you?
- Covers any damage your car absorbs when it hits, or is hit by, another vehicle or object
- Under this type of insurance, the highest amount you will have to pay is your deductible, and as a result, you should only choose as high a deductible as you think you can manage paying out of pocket.
- Since this coverage is normally dependent on the cash value of your car, it typically does not apply to older vehicles.
- This type of insurance is required for leased vehicles.
What can Uninsured Motorist (UM) coverage do for you?
- Covers you, the insured relatives of your household, and any passengers in your car for injuries or death caused by an uninsured driver who is at-fault, or anyone who is the victim of a hit-and-run
- Under this policy, if the other driver is at fault but has no insurance, your policy will cover any pain and suffering up to the UM coverage limit.
What can Underinsured Motorist Bodily Injury (UIM) coverage do for you?
- Covers you, the insured relatives of your household and any passengers your car for injuries, damages or death that occurred at the fault of someone who has insufficient insurance
- Should you be hit by someone whose insurance cannot cover your damages, this policy could meet the difference, up to a certain point.
What can Personal Injury Protection Coverage (PIP or No-Fault) do for you?
- Covers a limited amount of medical, hospital and funeral expenses needed by the insured individual, any others in his or her vehicle, or pedestrians he or she hits
- Under this policy, mileage to and from health care providers, any needed household expenses and lost wages are also covered.