PERSONAL AUTO INSURANCE

WHICH AUTO INSURANCE DO YOU REALLY NEED?

Auto insurance can be confusing. Many people have an insurance policy but do not understand which coverage kicks in when. Here are a few definitions to help clear things up:

• Collision Coverage: This is the basic insurance type that covers your vehicle if you collide into something after the deductible is paid. This covers collisions with other cars as well as if you were to run into a wall, barrier or bridge.

• Comprehensive Coverage: This covers anything that may happen to your car that is not directly related to a collision. This would include things such as theft, fire, hitting a deer, vandalism or falling objects like trees or hail after the deductible is paid.

• Liability Coverage: This type of coverage covers the damages when you are at fault in an accident and you damage someone else’s car or property. Liability coverage is often mandated by law, so it is important that you as the driver make certain you have an adequate amount.

• Medical Payments: This is also called PIP (Personal Injury Protection) in some states. Medical payments pay for any injuries to the driver or passengers that occur if an accident occurred while you were driving. Medical payment insurance varies from state to state, so make certain you are covered as expected.

• Uninsured Motorist Coverage: protects you if you’re in an accident with an at-fault driver who doesn’t carry liability insurance. 

• Underinsured Motorist Coverage: steps in when you’re in an accident with an at-fault driver whose liability limits are too low to cover the damage or medical expenses.

• Uninsured Motorist Property Damage: This can pay for repairs to your vehicle if it is damaged when it is struck by an uninsured driver, a hit-and-run driver or an insured driver whose property damage liability limit is not enough to cover the full amount of property damage losses incurred.