Auto Insurance Basics

Each year, more cars and drivers travel America's roads. This can lead to an increased likelihood of a car accident for you and your family. If you get in a car accident, the car insurance you own can make a large difference in what happens next. How can you decide what insurance you require and how to purchase it? Insurance requirements will differ by state/province, but typically include the following: Liability: Personal injury and property damage that you are responsible for will be covered under liability insurance. Damages from bodily injury can include medical fees, lost wages, and pain and suffering. Property damage can refer to damaged property and loss of property use. If you are in legal trouble, it also pays your legal fees. Local laws typically require minimum amounts, but larger amounts can be purchased and are usually recommended. Personal Injury Protection: Personal injury insurance is required in some states and is optional in others. It pays you or your passengers for medical treatment resulting from a crash, regardless of who may have been at fault, and is often called no-fault coverage. It may also cover lost wages, replacement of services and funeral costs. The minimum amount of this insurance is usually set by the state. Medical Payments: Medical payment coverage is available in non-no-fault states and will pay no matter who is responsible for the accident. All reasonable medical or funeral expenses will be paid for under this insurance coverage. Collision: This pays for damages to your car caused by a collision. Comprehensive: This type of insurance takes care of any non-collision damages. This may include fire and wind damage, vandalism, and theft. Uninsured Motorist: If you are in an accident with a driver without insurance or a hit-and-run driver, this type of insurance coverage will protect you. Under-Insured Motorist: This pays for collision expenses when a driver with insurance is injured in an accident caused by a driver who does not have enough liability insurance to cover the total cost of the damages. Other kinds of car insurance, such as car rental, can also be purchased. Car Insurance Groveland

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