While each state in the U.S. sets its own specific laws and requirements for auto insurance coverage, one rule is the same across the board: you must have insurance to drive a vehicle, whether it is a car, truck, or SUV. The dollar amount you must have for each type of coverage varies from state to state as well.
Types of Auto Insurance Coverage
In general, you must maintain at least the minimum coverage required by your state. This is typically broken down into the following categories.
- Bodily Injury Liability - This aspect of your coverage will pay for medical expenses of anyone who was involved in the accident. Your insurance company will pay the other driver's expenses if you were at fault in the accident, and vice versa.
- Property Damage Liability - This component pays for any damage to the other person's vehicle or other personal property when you are at fault. If you caused the accident, this coverage will not apply to any damage to your own vehicle.
Most states require that you have, at the very least, those two primary coverage types. There are also a variety of optional coverage types you can add on to your policy, including:
- Personal Injury Protection - This goes beyond the bodily injury liability coverage, adding on protection if a person's injuries require them to be out of work temporarily or permanently as a result of the accident.
- Uninsured/Underinsured Motorist Coverage - This component will pay for any damages caused by another person that go beyond the scope of their insurance coverage. It will also cover the damages if the other driver does not have insurance at all.
- Collision Coverage - This is the aspect of your insurance policy that will pay for any damages to your own car when the accident was your fault.
- Comprehensive Coverage - This additional coverage is somewhat of a blanket term for anything not covered under the previous categories and includes things like fire and flood damage.
While these coverage options are not typically required by the states, it can give you added peace of mind to know that you are protected in any event. If you choose to finance your vehicle, your lender may require you to have additional coverage, which you must maintain until your loan is paid in full.
Learn More about Auto Insurance Coverage
Reach out to Lang Insurance today to learn more about our options for automotive insurance and how much coverage is right for you. Call now or request a quote online to get started.