Virtually in all states, every motorist is required to have at least the minimum levels of auto insurance cover offered within the state. Beyond the minimum, insurance companies offer other packages with loads of additional services attached. Driving without a cover is criminal and attracts very deterrent consequences. Such legal conditions and how people react to it could be likened to the caged bird analogy. Some may view it as caging, having the state impose the need for a cover but the same cage keeps the cat away! Motorists have extensive protection from insurance. Below are some of the policies offered for motor coverage and components attached to each.
This policy covers a motorist in an event they are involved in an accident as a result of their actions. It insures the cost of repairing any property damages as well as medical implications from injuries following such accident. It is advisable to have the cover with minimum liability covered higher than what one’s state requires, that is if one can afford it. The insurance does not cover any claims above one’s upper coverage limit.
Collision coverage pays for car’s repairs in the event of an accident. It is necessary to note that this cover only indemnifies based on the current value of the car. It’s not suitable for old cars.
Personal Injury Protection (PIP)
PIP covers any medical consequences to an accident. While other policies such as comprehensive coverage may not be necessary to sign up, this is primarily important. Medical bills may accumulate after an accident beyond one’s ability to pay up. The policy covers both the driver and passengers during the accident.
This cover gives a motor vehicle owner protection against damages regardless of whose fault it was. It also includes liabilities such as loss, weather damages, accidents unrelated to other motorists such as hitting a deer on the road among others. To those who can fit it within their budget, it’s an effective cover to have. As more perceptive of you may have determined by now, they are not any cheap. Its necessity is dependent on the type of car and frequency at which it is used.
Uninsured and Underinsured Motorist Coverage
A motorist who only have minimum coverage requirement based covers may not afford damages in the event of a serious accident. Damage cost can even exceed value to some cars.In such situations, uninsured and underinsured motorist protection helps with expenses incurred.
Medical payment coverage
Medical payment coverage is similar to PIP but has a limited range of costs it covers. It shields hospital’s inpatient and outpatient services. In some states, it’s a requirement to every motorist to have one while it’s not the case in others.