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Car Insurance Coverages Explained

When you buy Car Insurance, do you know what coverages are included in your policy? Sometimes insurance can get confusing, but we're here to help you understand a few of the coverage options available to you. Here's a quick guide as to what you're getting with each standard coverage type.

Bodily Injury Liability Coverage (BI)

This type of insurance covers costs related to injury sustained by another person in an accident you are determined to be at-fault. It 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 (PD)

Similar to Bodily Injury Liability, Property Damage Liability coverage covers 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.

Collision Coverage

Collision Insurance coverage takes care of damage to your covered vehicle in case of a collision with another vehicle or other property, less your selected deductible.

Comprehensive Coverage

Comprehensive Insurance coverage takes care of non-collision types of damages to your insured vehicle. Covered events include wildfires, a vehicle crushed under a tree, a car submerged in a flood, vandalism, theft and many other situations.

Uninsured Motorist Coverage

Uninsured Motorist Insurance coverage protects you if you are in an accident involving another driver who is determined to be at-fault and didn't carry insurance at the time of the accident.

Underinsured Motorist Coverage

Underinsured Motorist Insurance 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 Motorist coverage paying any claims.

If you are in an accident in which the other driver is at-fault and did not have insurance at the time of loss or had inadequate 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. This coverage may fill in gaps found in your Health Insurance policy.

Medical Payments (MedPay)

Medical Payments Insurance coverage helps to pay for injury sustained by covered drivers or to your passengers in an accident, regardless of fault. Depending on the policy, MedPay may also cover you as a pedestrian or cyclist. It's important to note that this is independent of your Health Insurance. 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 is not mandatory.

Personal Injury Protection Coverage (PIP)

PIP or Personal Injury Protection is a coverage that would compensate you for claims-related expenses such as medical expenses and lost wages. PIP claim payments are made regardless of fault up to the limits purchased.

PIP coverage is a mandatory coverage in 15 states, including 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, varies from state to state.  

AIS Can Help

The coverage types above 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 the required and optional coverage options available to you, based on the state you drive in.

Remember, each policy is different. That's why we are here, to guide you to a policy that’s right for you. Call us today at (888) 772-4247 for a free quote.

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