Auto insurance is one of the most important expenses for any driver. It helps protect your car, and it also protects you in case something goes wrong. Auto insurance provides a number of benefits to drivers who purchase appropriate coverage, including medical coverage, property damage liability and personal injury protection (PIP), as well as comprehensive coverage, collision coverage and uninsured motorist bodily injury (UMBI). Underinsured motorist bodily injury (UIMBI) provides additional protection when an accident occurs with another driver who doesn’t have enough auto insurance coverage to pay for all damages.
Medical coverage is available to drivers who purchase the right amount of insurance. This type of coverage pays for your medical bills, lost wages and funeral expenses if you are injured in a car accident.
Property damage liability
Property damage liability is an important type of coverage. It covers you if you are at fault for an accident and someone else’s property gets damaged. The coverage is usually set at a low amount, but it can be raised for additional fees.
The insurance company will pay for any damage to the other party’s property, up to the amount of your deductible + their deductible. So if your deductible is $500 and theirs is $250, then their total out-of-pocket expense would be $750 ($500 + $250). If their vehicle were worth more than what it would cost to repair or replace it after being damaged in an accident (after factoring in depreciation), then you could be sued by them for damages on top of what your insurance company paid them through this policy.
Personal injury protection (PIP)
Personal injury protection (PIP) is a form of no-fault insurance, which means it pays for medical expenses for you and other policyholders involved in an accident. PIP coverage typically covers 80% of your medical bills for three years following the crash. In some states, PIP is required; in others it’s optional. Some states require drivers to buy PIP as part of their car insurance policy, while others allow drivers to purchase PIP as an add-on by itself. It’s important to understand how much coverage will be included on your auto insurance policy before buying any additional insurance products like gap coverage or roadside assistance plans.
Comprehensive coverage is an important part of your auto insurance policy and will help you pay for damages to your car from a number of causes. These include fire, theft, vandalism, hitting an animal and more. Comprehensive coverage can be purchased with or without collision coverage. If you choose not to have comprehensive coverage on your auto policy, you may still want to consider purchasing it as a standalone policy as it has its own benefits.
Collision coverage is one of the most important components of an auto insurance policy. It pays to repair or replace your car if it’s damaged in an accident with another vehicle or object, such as a tree, building, or parked car.
Some states don’t require drivers to have collision coverage, but having it is always a good idea if you can afford it—even if you’re just a casual driver and don’t plan on getting into any accidents anytime soon. Collision coverage might seem expensive at first glance (about $300 per year), but think about how much time and money you could save if your car’s totaled after an accident—especially when you consider the fact that newer cars depreciate quickly and are not worth much once they’ve been in an accident (this applies even if they were only slightly damaged).
Nowadays there are other ways to protect yourself from having your car totaled by adding replacement cost coverage onto your policy instead of purchasing collision insurance separately; this option would significantly reduce premiums for those who want both types of protection but can’t afford them together right away.
Uninsured motorist bodily injury (UMBI)
UMBI is a coverage that pays for the medical expenses and other damages you or your passengers incur when you are hit by a vehicle with no insurance, or by someone who does not have enough money to pay for the damages they caused. UMBI also covers injuries suffered when you or your passengers are hit by an uninsured or underinsured motorist.
This coverage is available in all states and can be purchased with liability coverage. UMBI pays regardless of who was at fault for causing an accident.
Underinsured motorist bodily injury (UIMBI)
UIMBI is the coverage that pays for your injuries when an underinsured motorist causes an accident. Underinsured motorists are those who have insurance that is insufficient to cover your full claims. For example, if you suffer a $100,000 injury in a car accident caused by someone else and their insurance only covers $50,000 of it, UIMBI would pay off the remainder of what’s owed to you.
UIMBI also protects you if there are two drivers involved in an incident but only one has insurance (or enough insurance) to cover all costs associated with the crash. This could happen if both drivers’ vehicles were totaled and neither was able to make a claim against his or her own policy for property damage due to financial inability rather than intent on not paying out what’s owed from their policy limits.
In certain states like California and New Jersey—where there’s no fault coverage—this type of protection can help protect against liability claims brought by other parties who may have been responsible for causing serious bodily injury or death through negligence while operating their vehicle on public roads; however some states do not require UIMBI coverage even though they do require liability insurance policies at minimum levels specified by state law (typically $25k).
Auto insurance provides a number of benefits to drivers who purchase appropriate coverage.
Auto insurance is required by law and provides protection for you and your family. The right auto insurance can also help keep your rates low, which is important because the cost of premiums continues to rise.
Auto insurance also acts as an investment in that it protects you against financial ruin in the event of an accident. For example, if a driver causes an accident while they are uninsured or under-insured, they could be held liable for medical expenses that exceed their coverage limits, lost wages during recovery from injuries, pain and suffering damages and other related losses. In this case, liability coverage would cover those costs after any applicable deductible has been paid out by the responsible party’s policyholder(s).
Auto insurance is one of the most important types of coverage that drivers can purchase. The benefits offered by auto insurance are numerous, and they make it possible for you to protect yourself in case something goes wrong while driving. If you’re interested in learning more about these benefits and how they can help improve your driving experience, contact us today!