Are you looking to save money on auto insurance? Like many people, a little bit of comparison shopping will leave you confused about what’s actually necessary and important in your coverage. There are several things to be aware of when looking at lower cost, minimum coverage policies. Each state has minimum requirements for auto insurance that must be understood. Once you understand these, you can decide what is necessary and appropriate for your budget and needs.
Bodily injury liability limit is the amount of coverage for each person injured in an accident for which you are responsible. It also covers legal defense in case another party files a lawsuit against you. However, it is only injury to people that are covered, not injury to vehicles. Comprehensive insurance coverage covers your vehicle for losses from incidents that occurred in other ways besides collision. Examples of such incidents include theft, flood, fire, or animals.
Collision coverage is for damage to your car when it is hit by another vehicle or an object. The coverage is usually limited to the cash value of the car. Medical payments cover medical expenditures for you and your passengers who were injured in an accident, regardless of who is at fault. Uninsured motorist bodily injury covers bodily injury to you and your passengers if the other person does not have insurance (or enough insurance) in case you are not at fault.
Personal injury protection is for the medical, hospital, and funeral expenses of you and other vehicles struck by you, regardless of who is at fault. Personal damage liability covers you if your car damages the property of someone else (such as their house or automobile). It also includes legal defense if a lawsuit is filed against you. Understanding the different types of insurance coverage, helps you make intelligent choices about auto insurance.
