Insurance laws vary from state to
state, but all states require some type of insurance or proof of financial
responsibility. Even though it may seem like an “extra” cost, car insurance
protects you, your family and your vehicle if you’re ever in an accident or
your vehicle is damaged.
Several factors, including your
driving record and insurance history, effect the type of insurance policy
available to you. If you have a clean driving record and have been insured in
the past, you’ll most likely qualify for standard auto insurance.
Generally, if you haven’t had
insurance, or have a less than perfect driving record, you can still qualify
for auto insurance. This type of insurance is known as non-standard auto
insurance.
Your auto policy may include six
coverages. Each coverage is priced separately.
Bodily Injury Liability
This coverages applies to injuries that you,
the designated driver or policyholder, cause to someone else. You and family members listed on
the policy are also covered when driving someone else’s car with their permission.
It’s very important to have enough liability
insurance because if you’re involved in a serious accident, you may be sued for a large sum of
money. Definitely consider buying more than the state-required minimum to protect your assets,
such as your home and savings.
Medical Payments or Personal Injury Protection (PIP)
This coverage pays for the treatment of injuries to the
driver and passengers of the policyholder’s car. At it’s broadest, PIP can cover medical payments, lost
wages, and the cost of replacing services normally performed by someone injured in an auto accident. It
may also cover funeral expenses.
Property Damage Liability
This coverage pays for damage you (or someone
driving the car with your permission) may cause to someone else’s property, Usually this means
damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences,
buildings, or other structures your car hits.
Collision
This coverage pays for damage to your car resulting
from a collision with another car or object or as a result of the car flipping over. It also covers
damage caused from potholes.
Comprehensive
This coverage reimburses you for a loss due to theft or
damage caused by something other than a collision with another car or object. Damage might be caused by
a fire, falling objects, earthquakes, windstorms, hail, floods, vandalism, or contact with animals such
as birds or deer.
States do not require that you purchase collision or
comprehensive coverage, but if you have a car loan, your lender may insist you carry it until you repay
your loan.
Uninsured and Underinsured Motorist Coverage
This coverage reimburses you, a member of your family or a
designated driver if one of you is hit by an uninsured or hit-and run driver.
Underinsured motorist coverage comes into play when an at
fault driver doesn’t have enough insurance to pay for your total loss. This coverage will also protect you if
you’re hit as a pedestrian.
So you can get back on the road and
back to your life! Request a quote online from our
Quote Tool.
Insurance Laws
