Choosing the correct auto insurance coverage for your needs can be a confusing process. I worked as a claims adjuster for three years. Most people normally had no idea what they were actually covered for when they got in an accident. This guide shows you some of the more important coverage types in my mind.
Collision insurance covers the damage to your car if you are in an accident. If you are not at fault in an accident, you can use your collision insurance. Your insurance company then attempts to retrieve the money you pay out of your pocket once the company proves the other driver was at fault.
Comprehensive coverage refers to if your car is involved with a theft, vandalism, and other non-traffic related events.
Most states require that you carry a minimum amount of liability insurance. This is used if you are in an accident and it is considered your fault. It pays for the damage of the other car.
Personal Injury Protection
Personal injury protection, also called (PIP), is used to cover medical expenses for you and your passengers if you are in an accident. It is not a requirement in most states. However, it is still highly recommended and normally very affordable.
Uninsured Motorist coverage comes into play if the other party in an accident has no insurance. Unfortunately, drivers not even having liability is a big problem in the United States. This is also highly advisable to purchase. The prices is normally relatively low.
Bodily injury liability
This protects you if cause injury, or kill someone from a car accident that is proven to be your fault. The added benefit is that it covers you for legal defense fees in such a matter.
*****Note- All specific coverage questions must be referred to the insurance rep at your company for further clarification.******