Things to Understand Before Buying Car Insurance Policy

Liability Insurance

Liability car insurance pays others when you cause a car crash that results in damage or injuries to others. Liability insurance also pays for your legal defense in case you’re sued because of an accident. Here are some examples of what liability insurance covers:

• You crash into your neighbor’s fence

• You rear end someone at a traffic light and damage their car

• You cause a car accident and the other driver is hurt

Liability car insurance is required in every state, except in New Hampshire and Virginia (but even those states have some liability requirements under certain conditions). The minimum required amount will vary depending on your state.

It’s better to buy more than your state’s minimum. That’s because state minimums can be woefully inadequate if you cause an accident with multiple injuries. You’ll be on the hook for any medical expenses above your policy limits. You’ll want enough liability insurance to cover what can be taken from you in a lawsuit.

Uninsured Motorist Insurance

Uninsured motorist (UM) insurance and underinsured motorist (UIM) insurance pay for your medical expenses if someone crashes into you who has no insurance or not enough. Uninsured motorist coverage does not pay the driver who’s uninsured.

UM can also pay for your medical expenses if another driver’s insurance denies coverage or goes out of business.

UM coverage pays for:

· Medical bills of you and/or your passengers

· Lost wages if you can’t work due to injuries from a car accident

· Pain and suffering

· Funeral expenses

· Car damage, depending on your state

Uninsured motorist insurance is required in some states. In other states your car insurance must offer you this coverage, but you can typically reject it in writing. UM is generally a good coverage to have. You’ll usually purchase UM in coverage amounts that match your liability insurance.

Collision and Comprehensive Insurance

If you want coverage for car repair bills, collision and comprehensive insurance cover a wide range of problems. You can buy these types of car insurance separately, but they’re often sold together. If you have a car loan or lease, your lender or leasing agent will likely require you to carry both of them.

· Collision insurance covers car repair bills for car accidents, regardless of who caused the accident. For example, if you back into a pole, your collision insurance will pay to repair your bumper. If someone crashes into your car, you can file a claim under your collision insurance to pay for repairs—or sue the other driver under their liability insurance.

· Comprehensive insurance covers car theft and repair bills for problems such as vandalism, floods, fire, hail, falling objects (like tree branches), riots and collisions with animals (like deer).

If you file a claim under one of these types of auto insurance, your insurance claims check will be reduced by your deductible. For example, if you have a $500 deductible and your car repair bill is $2,000, you’ll have to pay $500 to the repair shop and your insurance company will pay $1,500.

Medical Payments

Medical payments coverage, sometimes called “MedPay,” covers medical bills for you and your passenger for injuries suffered in a car accident, regardless of who caused the accident. It’s usually sold in small amounts of coverage, often between $1,000 to $5,000. MedPay is not available in every state.

Personal Injury Protection

Personal injury protection (PIP) coverage is similar to MedPay and covers medical expenses for injuries suffered in a car accident for you and your passengers, no matter who caused the accident. PIP generally pays for:

· Medical bills for car accident injuries

· Lost wages if you cannot work due to injuries

· Rehabilitation costs

· Replacement services for things you can’t do because of injuries, like child care or cleaning services

· Funeral expenses and survivor benefits

Many states require PIP and it’s sometimes part of the “no-fault auto insurance” laws, which generally require you to make smaller injury claims on your own PIP insurance. PIP is an optional coverage in some states and not available in others.

Let us design a plan that fits your need so you have adequate coverage but are not overinsured. CompareAquote has plans to fit all types of automobiles and commercial vehicles.