Automobile Insurance 101

Bodily Injury Liability: Provides coverage to an accident victim in the event of a law suit and is required by the State

Property Damage Liability: This covers the cost of any damage that your vehicle causes to another person’s property. While this usually refers to the other vehicle involved in an accident, it can also include houses, garages, and anything else that counts as property.

Uninsured / Underinsured Motorist: This pays for the damages that result from an accident caused by an uninsured motorist. This also pays for damages which cost more than an underinsured motorist’s coverage can pay for.

Personal Injury Protection: This offers medical coverage for the policyholder and his or her family in the event of a collision, regardless of fault. It will also provide coverage for pedestrians who are hit by a vehicle. Many options are available to provide funeral expenses and other important coverage's needed when you are hurt and cannot work.

Collision: Covers damage done to your vehicle when it collides with another vehicle or object.

Comprehensive: Covers damage to your vehicle resulting from something other than a collision. Examples for this would be hitting a deer, broken windshields, theft or flood.

Other Miscellaneous Coverage: This varies depending on the insurance provider.

• PIP: Personal Injury protection- PIP covers the medical bills that you incur in an automobile accident. If you have taken out PIP on your name it will cover you as the ‘named insured' additionally it offers coverages to people living in the same household or is in relation with you
• Medical Payments- Medical payments coverage may also cover policyholders and their family members when in others' vehicles, or when policyholders and their family members are on foot and hit by a car. Covered costs are subject to the limits you choose when you buy your auto insurance policy.