The following is a list of some required and optional auto insurance coverage that is required if you want to drive a vehicle on the road :
Personal Injury Protection (PIP) -- pays for expenses resulting from injury or death to you or your passengers, regardless of who is at fault. This car insurance coverage will also pay a death benefit to the deceased's survivors. Different states will have different requirements on this.
Bodily Injury Liability -- pays for medical or death expenses resulting from an accident in which you are at fault.
Property Damage Liability -- pays for repair or replacement and legal expenses for property damaged in an accident in which you are at fault.
Uninsured/Underinsured Motorist Protection -- pays personal injury or death benefits if you are involved in an accident caused by an underinsured, uninsured, or a hit-and-run driver.
Comprehensive -- pays for damage caused by theft, fire, vandalism and most natural disasters. Though optional in most states, banks will typically require you to purchase this car insurance if the vehicle you are buying is being used as collateral for a loan. Equipping your vehicle with certain anti-theft devices will also help to reduce your auto insurance premium.
Understanding the different types of auto insurance coverage will enable you to make the right decisions when getting a package that suits your lifestyle as well as fits comfortably into your budget.
