Car insurance is the most common form of protection in the U.S., and it’s not hard to see why – cars are an expensive investment, and they cost more to repair when they get damaged. If you own your car, it’s likely that you spend a significant amount of money on car insurance every year, so it’s important to know which types of coverage you actually need. Read this blog to learn what car insurance coverage you need, and why.
Bodily Injury Liability
If you’re at fault in an accident, bodily injury liability coverage will help pay for the medical expenses of the person or people injured. This can include hospitalization, surgery, funerals, and more. Even if you don’t think you need this coverage, it’s always better to be safe than sorry – especially when it comes to car accidents.
Property Damage Liability
One of the most important types of car insurance is property damage liability. This coverage protects you financially if you damage someone else’s property while driving. It can help pay for repairs to their vehicle, as well as any other property that was damaged, such as a fence or building. This coverage is especially important if you live in an at-fault state, where you may be held responsible for damages even if you were not at fault in the accident.
Collision
No one wants to get into an accident. But if you do, it’s important to have the right kind of car insurance coverage. That’s where collision coverage comes in. Collision coverage can help pay for repairs to your car if you’re involved in a collision with another vehicle or object. It can also help pay for a rental car while your car is being repaired. That way, you won’t have to worry about how you’re going to get around.
Comprehensive
When it comes to car insurance, there are a lot of options out there. And it can be difficult to know what coverage you need – or why you need it. But understanding your options is important, because the right car insurance can protect you (and your wallet) in the event of an accident.
Medical Payments
One type of coverage you may see offered is medical payments (or med pay for short). Med pay is designed to help cover the cost of any medical treatment you or your passengers may need in the event of an accident, regardless of who is at fault. While the amount of coverage will vary from state to state and company to company, med pay is typically pretty affordable. Plus, it can give you some peace of mind knowing that you’ll have help covering those unexpected medical bills.
Uninsured Motorist Bodily Injury
If you’re in an accident caused by an uninsured driver, this coverage helps pay for your medical expenses. It also covers any lost wages and pain and suffering damages that may be awarded in a lawsuit. In some states, it’s required by law. Even if it’s not, it’s a good idea to have this coverage to protect yourself financially.
Personal Injury Protection (PIP)
If you’re involved in a car accident, personal injury protection (PIP) is a type of insurance that can help cover your medical expenses and lost wages. PIP is sometimes called no-fault coverage because it can be used regardless of who is at fault for the accident. PIP can help pay for things like ambulance rides, surgery, hospital stays, and physical therapy. In some states, PIP also covers funeral expenses and death benefits.
Underinsured Motorist Bodily Injury
If you’re in an accident caused by someone who doesn’t have enough insurance to cover your medical bills, this coverage will help pay the difference. Even if the other driver has insurance, it may not be enough to cover all of your expenses – especially if you have significant injuries. Underinsured motorist bodily injury coverage is important protection to have in case you’re in an accident caused by an underinsured driver.
Rental Reimbursement
If you don’t have rental reimbursement coverage on your car insurance policy, you could be in for a nasty surprise if you’re ever in an accident. Rental reimbursement pays for a rental car while your car is being repaired after an accident. It’s not required by law, but it can be a lifesaver if you’re ever in an accident.
Other Types of Coverage
There are other types of coverage that you may want to consider as well. For example, collision coverage can help pay to repair your car if it’s damaged in an accident. If you live in an area with a lot of severe weather, you may also want to consider comprehensive coverage, which can help pay for damage caused by things like hail or floods. Other types of optional coverage include roadside assistance and rental car reimbursement.