Car insurance coverages explained.
When you buy car insurance, do you know what is included in each of the coverage terms? Here's a quick guide as to what you're getting with each standard coverage type:
Bodily Injury Liability Coverage or BI
This type of insurance would cover costs related to injury sustained by another person in an accident if you are determined to be at fault, and may also cover legal expenses related to a covered loss, depending on the policy limits selected. It does not, however, cover injuries you may sustain. There are other specific limitations on who may or may not file a BI claim so we recommend that you discuss this coverage in detail with an Auto Insurance Specialists agent or your insurance company directly.
Property Damage Liability Coverage or PD
Similar to bodily injury liability, property damage coverage would pay for damage to property for accidents where you are determined to be at fault, up to the limits you have purchased. This covers not only other vehicles but also other objects your car may damage, such as fences, mailboxes, and buildings.
Medical Payments or MedPay
This coverage helps to pay for injury sustained by covered drivers or to your passengers in an accident, regardless of fault. Depending on the policy, it may also cover you as a pedestrian or on a bicycle. It's important to note that this is independent from your health insurance, and that you should not forgo medical payments in your policy; your medical payments coverage is designed to help fill common gaps in health insurance policies. In most states, Medical Payments is an elected coverage and not mandatory.
Uninsured Motorist Coverage and Underinsured Motorist Coverage
Uninsured Motorist Coverage - protects you if you are in an accident involving another driver that is determined to be at-fault and didn't carry insurance at the time of the accident.
Underinsured Motorist Coverage - protects you if you are involved in an accident and the other driver is at-fault and has coverage but not enough to cover all of the damages and injuries they may have caused. The at-fault driver's policy limits would be exhausted prior to your underinsured coverage kicking in.
If you are in an accident where the other driver is at fault and did not have insurance at the time of loss or have adequate coverage, it can be difficult or even impossible to receive proper compensation for your injuries. Uninsured motorist coverage allows you to pay for medical treatment and damage to your vehicle without suffering a severe financial setback up to the policy limits you purchase. Again, such a policy will fill in gaps that you may not realize your health insurance policy may have.
Collision coverage takes care of damage to your covered vehicle in case of a collision with another vehicle or other property, less your selected deductible.
Essentially, comprehensive coverage takes care of "non-collision" type damages to your insured vehicle, which would be events such as being destroyed by wildfires, crushed under a tree, submerged in a flood, vandalism, theft and many other situations are covered by comprehensive insurance.
Personal Injury Protection Coverage
PIP or Personal Injury Protection is a coverage that would compensate you for claim related expenses such as medical expenses and lost wages. Claim payments made under PIP are made regardless of fault up to the limits purchased.
PIP coverage is a mandatory coverage in 15 states which include Delaware, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, Texas and Utah. It is important to note that PIP insurance, and what may be covered by it, does vary from state to state.
AIS can help!
The coverage types here are just examples of some of the most common types of auto insurance coverage. There are many other coverages available that can help protect you and your family. Ask one of our insurance specialists to explain all of the required and optional coverage options available to you, based on the state you drive in.
Remember, each policy is different, so treat the above as a starting point and ask detailed questions. That's why we here at AIS make sure we know our way around every coverage and insurance partner, and can guide you to a policy that’s right for you. So if you're not sure what you need, call us. We'll help get you on the road!