Your state laws or lender requirements may require that you carry certain coverages; typically this would include liability, collision and comprehensive.
Liability coverage covers injury expenses caused to other people by you or family members listed as beneficiaries in an accident, regardless of who caused the collision. It also protects property damage.
Liability coverage
Liability insurance covers injuries sustained to others and damages to their property when an accident is your responsibility. Policies typically set a limit per person as well as total limits per incident, though some policies use one combined single limit instead.
Collision coverage covers your car when it collides with another vehicle or object – such as trees, rocks, guardrails or buildings – or when it rolls over or hits deer. Although collision insurance is typically optional for drivers who lease or finance their cars, it may be required.
Uninsured/underinsured motorist coverage, more commonly referred to as UM/UIM coverage, is required in some states and provides essential injury expenses coverage when the at-fault driver doesn’t carry insurance or has limits that fall below your uninsured/underinsured motorist policy limits. It also helps pay damages caused by hit-and-run drivers – typically equaling your bodily injury liability limits.
Property damage coverage
Property damage liability insurance provides coverage for costs associated with damages that you or someone driving your car with permission causes to other vehicles, their contents and structures like lamp posts, fences and buildings. While states typically set minimum property damage liability limits; insureds often choose higher limits as additional protection.
Most auto policies also include medical payments coverage, more commonly known as personal injury protection or PIP. This coverage pays without regard to fault for medical and funeral costs up to an agreed-upon limit, often less than bodily injury liability limits on most policies. Some insurers also offer additional options like collision, comprehensive and uninsured/underinsured motorist policies which can be tailored specifically to fit individual needs and budgets; contact an independent agent today to learn more!
Medical payments coverage
Medical payments coverage (MedPay) helps pay for you and your passengers’ medical expenses following an accident. Typical coverage includes emergency care, diagnostic tests like X-rays and some forms of treatment such as surgery or physical therapy.
Accident insurance is optional in most states, but you can add it to your policy as an add-on feature. It provides payment for accident-related medical expenses regardless of who was at fault — and can even cover copays and deductibles of other health plans.
Your MedPay premium depends on both the amount and limit you select; to protect yourself in case of an accident, aim for one equal or greater than your health insurance deductible. This way, no unexpected expenses will leave you out-of-pocket.
Uninsured/underinsured motorist coverage
Uninsured/underinsured motorist coverage, or UM/UIM coverage, covers expenses when an accident involves a driver who lacks car insurance (or who hits-and-runs). While required in some states, in others this coverage can be added as an optional add-on to your policy.
UM/UIM insurance typically comprises two forms of protection, UIM bodily injury coverage and property damage liability coverage. Both provide cover for medical bills, pain and suffering costs and lost wages should an accident result in your being injured by an uninsured driver, while vehicle repairs could also be covered if their insurance limits don’t cover all damages to your vehicle.
We generally suggest selecting UM/UIM limits that equal your liability coverage, and your agent can help determine how much coverage is appropriate. These policies may offer an optional collision deductible waiver which waives your deductible in the event of damage caused by an uninsured driver.
