If you carry only the minimum required amounts of auto insurance coverage that may not be enough to protect you in the event of an accident. Needs for auto insurance coverage vary widely among drivers. By evaluating your situation, you can determine the best auto insurance coverage that will protect you from serious financial loss should an accident occur.
Types of Insurance Coverage
Bodily Injury Liability. Pays your legal defense costs and claims against you if your car injures or kills someone.
Property Damage Liability. Pays your legal defense costs and claims against you if your car damages another's property. Does not cover your auto or any of your property.
Medical Payments. Pays medical expenses for you and others riding in your car in the event of an accident. Also pays for you or your family members who are injured by a car while riding in another's vehicle or on foot.
Collision. Pays for repairs to your car caused by a collision with another vehicle or any other object, regardless of who was responsible.
Comprehensive Physical Damage. Pays for damages to your car resulting from theft, fire, hail, vandalism or a variety of other causes.
Uninsured or Underinsured Motorist. Pays for costs related to injuries or property damage to you or your family members and guests in your car caused by an uninsured, underinsured or hit and run driver.
Personal Injury Protection (PIP). Provides coverage regardless of who is at fault. It pays 100% of reasonable and necessary medical expenses resulting from an accident and 85% of your gross lost wages resulting from an accident up to a specified limit. It is also available to passengers in your vehicle provided they meet they eligibility guidelines found in your policy.
Stein Sperling suggests that...
PIP SHOULD NEVER BE WAIVED BY YOU OR ANY MEMBER IN YOUR HOUSEHOLD.
- Limits: For each of the above types of coverage, you can buy different levels of coverage--the amount for which you are insured. This amount should be selected carefully. Ask your insurance agent to assist you in selecting coverage types and limits.