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Auto Insurance Quotes | |||
Six kinds of auto insurance coverageAn auto insurance policy has six different areas of coverage with the amount of each dependent on state minimums and your particular needs. Bodily Injury Liability This is coverage for the injuries of someone you hurt in an accident. It's also to provide for your legal defense if an injured person sues you. Most states have established minimum coverage usually about $25,000 for each person injured with a total payout per accident of about $50,000. Considering today's high medical and legal costs most experts recommend at least $100,000 per individual and $300,000 total. Property Damage Liability Property liability is for the damage you cause to another's property. Whether it's another car, a building or some other object this coverage goes for the repairs. Most states require a minimum of $10,000 to $25,000 but again with today's high repair and replacement costs it's prudent to get at least $50,000 coverage. Collision This coverage is to pay for the damage to your car if it's in any kind of collision and no matter whether or not it was your fault. This type of coverage is optional and not required by law. There are two limitations on what the insurance company will pay for collision. The first limit is set by the amount of the deductible which is your share of paying for any repairs or replacement. The second limitation is the value of your car. If you had a deductible of $500 and wrecked your car that was valued at $5,000, the insurance would pay $5,000 minus the deductible or $4,500. So if your car is old with a low value it can be reasonable to not have collision coverage. Comprehensive If your car is damaged by something other than a collision, comprehensive is designed to cover it. This can be from either natural events like a fire or storm, or man-made causes such as when your car is stolen or vandalized. Like collision coverage, if you have an car with a low value it may make sense not to have comprehensive. Medical Payments or Personal Injury Protection (PIP) PIP can pay for medical bills, funeral expenses and lost wages of anyone in your car when involved in an accident. This coverage is required in states that have no-fault laws. If you don't live in a no-fault state check your health insurance to if there is a gap in your coverage that PIP might fill. Uninsured Motorist Coverage Uninsured coverage pays for injuries suffered by anyone in your car if hit by an uninsured driver or if you're struck by a hit-and-run. Even in states that don't require this coverage it can make sense to get it. If you live in a city, that's where the most uninsured drivers are and where you're most likely to have an accident. Even if you're in a no-fault state, if you have an accident with an uninsured driver, the insurance company is only liable for the state required minimum which is often not enough to pay for your expenses. Privacy | ||||
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