Accidents may involve damaging another person’s property or it will include damage done to both drivers and the occupants of their vehicles. Huge amounts of money will be needed to meet these emergencies and it is not possible for everyone to pay for them. Purchasing adequate and appropriate auto insurance coverage is the best way to help to meet the your out of pocket expenses in these circumstances. Let us take a look at the various types of auto insurance coverage.
Liability Protection Coverage:
This coverage pays others the amounts that you are legally liable in the event of an accident. This can include the other drivers, their passengers and pedestrians. You are also liable to pay for the damage of others’ property in an accident. If you are slapped with a lawsuit, it will also pay for the legal defense costs. This coverage is required by most of the states in the US. The minimum liability coverage amount differs with each state. You should purchase different amounts for bodily injury and property damage cover. This will not cover your own bodily injury or property damage.
Personal Injury Protection Coverage:
This coverage covers injury, death, loss of income, loss of services caused to you or your passengers covered in the policy and your family members covered by your policy. This applies to those residing in no-fault states. This is applicable in no-fault states. It will pay for your medical bills and that of your passengers up to the amount of your policy. This coverage can be used in conjunction with your health insurance plan too. PIP coverage will also pay for your loss of wages during the period of your recovery. When you cause death of a person while driving, this coverage will cover their funeral expenses up to the amount of your policy.
Collision Protection Coverage:
This coverage protects you form losses caused by damage to your vehicle due to collision with another vehicle or object regardless of who was at fault. This coverage is not required by the states but if your vehicle is under lease the lender would require you to purchase it.
Comprehensive Protection Coverage:
This coverage protects you from losses arising out of accidents due to reasons other than collision. This may cover damage and loss caused by fire, falling of objects, natural disasters, theft, vandalism and glass breakage etc. If your vehicle needs to be replaced if it is stolen or totaled, this coverage will pay up to the cash value of your vehicle.
Uninsured Motorist Protection Coverage:
This coverage provides for meeting expenses for bodily injury you or your family may suffer when an uninsured driver hits the insured vehicle or when you are hit while being a pedestrian. This coverage also protects your property damage in some states. This policy will pay for your medical bills and for property damage after you have paid your deductible amount.
Medical Payments Protection Coverage:
This coverage pays for reasonable medical expenses towards treatment of you and your family members if you are injured in an accident while driving or while walking. This protection is also extended to other passengers of your vehicle.
Other Optional Coverage
Rental re-imbursement coverage will pay for expenses of renting a substitute vehicle when your vehicle is damaged.
Towing and labor costs coverage will pay for the emergency on the spot repairs and for towing your vehicle when it breaks down.