Learn This Ultimate Guide to Car Insurance
Car insurance is difficult to understand. Almost every motorist in the United States is obliged by law to obtain auto insurance, but you may be perplexed as to how it works. What exactly does it cover? What is the price? Why is it so expensive?
Let’s take a closer look at how it works and how it can help you save time and money.
Car Insurance Coverage Varieties
One of the reasons why auto insurance can appear difficult is that it can involve multiple types of coverage. Most states mandate basic coverage, and you can purchase more coverage to assist in paying costs in more instances. The following are the many types of coverage available in an auto insurance policy.
Liability
In most states, this is required coverage. Liability coverage may be divided into two types: bodily injury liability and property damage liability. If you are judged to be at fault in an accident, liability insurance can help cover the other party’s expenses.
Your insurance helps to cover the other party’s medical expenditures through bodily injury liability coverage. Your insurance helps to pay damage to the other party’s vehicle or structures that your vehicle hits with property damage liability.
Liability coverage is typically written as a three-number combination on your declaration page. For instance, you may have 25/50/10 coverage. The first number (25) indicates that a single person wounded in an accident could receive up to $25,000 in compensation.
The second number (50) indicates that up to $50,000 could be awarded in the event of a multi-person accident. The third number (10) denotes property damage, which signifies that up to $10,000 in coverage is available for damage to someone else’s property.
Medical Payments and Personal Injury Protection
Personal injury protection (PIP) coverage is required in some states. In some places, you may be able to choose between PIP and medical payment coverage. Personal injury coverage is more comprehensive than medical payment coverage.
It protects you and your passengers in the event of an accident. PIP covers medical bills, missed wages, and non-medical costs. Medical payment coverage pays for your and your passengers’ medical expenditures in the event of an automobile accident.
