Types of Insurance Coverage

There many types of auto insurance coverage
available. Some are required and others are
optional. Learning about the kinds of insurance
is the first step in making sure that you are
protected, but that you’re not carrying more
coverage than you need.

LIABILITY COVERAGE
Pays for bodily injury and property damage TO
OTHERS when you are found at fault in an
accident. Bodily injury pays for other people’s
injuries and can include medical expenses, pain
and suffering and lost wages. Property damage
coverage kicks in when you damage someone
else’s property with your vehicle – usually their
car. Most states require all drivers to carry some
level of liability coverage.

PERSONAL INJURY PROTECTION (PIP)
Pays medical expenses for you and any passengers
in your car due to an auto accident. PIP may
also pay for other expenses, like rehabilitation or
lost wages. PIP differs from liability coverage
because it pays these benefits no matter who is
at fault in the accident. By law, an insurance
company must offer you this coverage, but you
do not have to accept it (it is optional).

COLLISION
Pays for damage to your car as a result of colliding
with another vehicle or object. Optional.

COMPREHENSIVE
Pays for damage to your car when it is stolen or
damaged by something other than a collision.
This includes theft, falling objects, fire, hail, and
vandalism. Optional.

UNINSURED / UNDERINSURED MOTORIST
Pays damages when you are injured in an auto
accident caused by a driver who has no liability
insurance or who doesn’t have enough insurance.
This includes hit-and-run drivers. Optional.

OTHERS COVERAGES
Rental Reimbursement pays expenses incurred
for renting a car when your auto is disabled due
to an auto accident. Emergency Road Service
pays expenses incurred for having your auto
towed as a result of a breakdown. Towing limits
vary. Both are optional.