subject: Conventional Auto Insurance Coverage To Serve Your Diverse Needs [print this page] Driving without auto insurance is like going for skydiving without a parachute. Auto insurance not only ensures protection of the vehicles during unforeseen mishaps, it also guarantees the safety of the individuals involved in the mishap. Every state thus has its own set of auto insurance laws , which makes it mandatory for the vehicle owners to have the minimum level of coverage.
While there are basic coverage involved, one can also opt for additional auto insurance protection according to his or her means and requirement. Unless you know about the types of coverage that you need to get, you might end up with the wrong coverage and have to keep on paying for it. Read along to know about the regular types of auto insurance coverage.
Types of auto insurance coverage
Auto insurance ensures a wide range of coverage to the policy holders. The below mentioned ones are conventional forms of auto insurance coverage that comes to the aid of vehicle owners, during different crisis situations.
1. Bodily injury liability Bodily injury liability bears the cost for the medical expenses, pain and suffering or lost wages for those who get affected due to an accident. If you are held responsible for the accident, your insurer will have to pay for the expenses to the other party and his injured passengers. This form of coverage will also help your passengers, if they get physical injuries due to the accident. Bodily injury liability coverage is mandatory under most state auto insurance laws.
2. Personal injury protection Personal injury protection, or PIP, provides financial help to the insured person, i.e. you, during any accident. It pays for the necessary medical treatments, rehabilitation costs, etc. It usually doesnt take into account who is at fault for the accident, and pays your medical bills in any case. You can also include your family members, passengers and permitted drivers under your policy coverage. PIP coverage is essential since it ensures your safety following an accident. State insurance laws in Florida, Kentucky, New York etc. have made PIP mandatory, while in the other states it is offered as an optional coverage.
3. Property damage liability This is another form of auto insurance coverage which is dictated by the state auto insurance laws. It pays for those properties which have been hit or damaged by your vehicle.
4. Collision coverage This form of auto insurance coverage pays for the damages to your car that arises out of collision with the other driver. Collision coverage is optional in most of the states.
5. Comprehensive coverage This form of auto insurance coverage compensates the policy holder for the damages or losses to his vehicle due to theft, fire or natural calamities, etc. It doesnt pay for losses caused by collision or driving errors. This is also an optional coverage in most of the states.
by: Juanita Martinez
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