A great place to start is comprehending the fundamentals. First of all, it must be clear that an auto insurance policy is just a combination of different types of insurance coverage. Subsequently, there are types of cover which are considered necessary by the state you live in. Generally they are Bodily injury liability (BIL), Personal injury protection (PIP) and Property damage liability (PDL) coverage. In different states different minimum limits are required.
Bodily injury liability - if you kill or harm someone while driving your automobile, the BIL part of your policy will provide you protection. Its worth mentioning that if someone files a lawsuit against you, as a result of an accident you have caused, Bodily Injury Liability will cover your legal costs. A serious automobile accident may become very expensive so its wise to have plenty of cover to safeguard your personal assets. BIL is not about your auto, but rather potential personal injuries to other people. Try maintaining identical amount of BIL cover for all your motor vehicles.
Property damage liability - this part of the insurance policy is designed to cover other people's property destroyed during an accident. If you end up in a scenario where another party is suing you for property damages you have caused, PDL gives you legal defense.
Personal injury protection - closely associated to No-Fault in a few states. PIP covers the medical costs for the driver and persons in your automobile. Some policies include protection for injuries suffered as a pedestrian.
Experts always recommend obtaining more cover than the state's required minimum.
Additional Auto Insurance Coverage
Wanting to know what other types of cover may be useful? It really depends on what kind of vehicle you drive and where you live, but here are a few of the most popular ones:Uninsured motorist coverage - it doesn't come as a surprise that the sheer number of uninsured drivers has increased lately. It can be blamed on the economic climate or the lack of social responsibility, but either way you need to look after yourself and your famil. Uninsured motorists coverage is highly recommended and not that expensive in most states.
Comprehensive physical damage coverage - this is the type of cover you need to have if you want to protect your motor vehicle against fire, flood or theft. Take into account the price of your vehicle before adding such cover and decide if its really worth it or not. The price of this coverage really depends on the deductible you are comfortable having.
Collision coverage - if you are hit by another vehicle or object, or even your vehicle hits another automobile, collision coverage will pay for the damages to your vehicle. Once more, its only advised to add this type of cover to your insurance policy if your automobile is worth it.
This is basically all the basic information you need to have about the main types of auto insurance coverage. At this point you can make an educated decision which cover you require and which one is pointless for you. Always go with more than the minimum required and consult an insurance professional if in doubt.
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