Car insurance is required in many states because it demonstrates financial responsibility and protects from potential large financial burdens should an accident happen. Without car insurance, severe penalties such as license and registration suspension or cancellation could apply – penalties that include license suspension/revocation as well as fines/penalties can arise from accidents occurring without it.
Personal Injury Protection (PIP), commonly referred to as no-fault coverage, pays quickly regardless of who was at fault for any economic losses you and your passengers suffer due to an accident.
Liability Coverage
Most states mandate drivers carry at least some minimum liability insurance coverage. This type of car insurance compensates victims and property damaged as a result of accidents that are solely your responsibility, usually bodily injury per person and property damage per accident. Liability limits typically include bodily injury per person and per incident respectively.
If your car costs more to maintain or replace than earlier models, higher limits for liability coverage might be an excellent idea. Customize your policy further with collision and comprehensive protection – many lenders require these add-ons if leasing or lending the vehicle to someone.
In some states, such as New York, drivers are required to carry medical payments insurance as well. This coverage pays for injuries suffered by you and any passengers regardless of who caused an accident; however, it doesn’t cover lost wages or benefits that might have otherwise accrued as a result.
Some states allow no-fault insurance policies, in which your auto insurer covers for any injuries sustained regardless of who caused an accident, up to an agreed-upon limit. This type of protection is commonly known as personal injury protection (PIP).
Optional coverages to consider are roadside assistance and towing/damage towing. These benefits cover costs such as tow trucks or locksmith services if you break down on the side of the road; some policies also offer protection from theft and natural causes such as hail.
While most states mandate at least some level of car insurance coverage, oftentimes this minimum coverage won’t protect you or your loved ones in the event of an accident. To learn more about which types of coverage would best meet your individual needs, reach out to a Plymouth Rock representative today and talk about them with them!
Age and driving records of other drivers within your household can make a difference when setting rates. Mileage, driving habits and location also play a big part; for instance commuting long distances or covering more miles each year increases rates due to increasing risk for accidents and theft.
Bodily Injury Coverage
Bodily injury coverage provides financial coverage for others’ medical expenses and car repairs if you’re found at fault in an accident, as well as lost wages and any compensation the victim might receive as a result of being involved. Most states mandate minimum limits of bodily injury liability coverage; some drivers opt to increase this limit further to protect themselves and their assets against costly lawsuits.
New York law mandates motorists have at a minimum, $25,000 of bodily injury coverage per person and $50,000 for property damage liability coverage. Insurance agents often advise their customers to increase these limits to 100/300; this decision lies with each driver alone.
Alongside bodily injury liability coverage, some policyholders may elect to add personal injury protection (PIP). This first-party coverage pays for medical expenses associated with an accident regardless of who was at fault – something required in no-fault states like New York.
Comprehensive auto insurance is usually optional but often advised. It provides protection from incidents outside of collision, such as hail damage, vandalism and theft, but should always be combined with collision coverage for full protection of your car.
Up until mid-2024, photo inspection was required before you could purchase comprehensive or collision coverage – this requirement was designed to prevent fraud and was widely successful.
Drivers may wish to consider adding additional features to their policy, such as roadside assistance and rental car coverage – services provided by many companies for an additional cost. Anti-theft devices could help lower comprehensive insurance premiums by deterring criminals from stealing your car in the first place.
Purchase of auto insurance requires understanding your state’s car insurance laws and being aware of what’s necessary in terms of coverage requirements. By being informed about this requirement, you can make sure you’re properly protected should an accident happen.
Property Damage Coverage
Property damage liability coverage reimburses those involved in an accident who are responsible for repairs to other people’s cars or property if you cause them harm. Many states mandate minimum limits of property damage liability coverage, while you can add extra coverage as an added layer of protection. While your state may include minimum property damage limits as part of their minimum limits policy, many drivers opt for higher limits to save themselves from costly repairs in the event of an accident.
Property damage coverage under your policy typically extends to damage to mailboxes, fences, houses, business buildings and utility poles – however this typically doesn’t include personal items like clothing and furniture damaged during an accident. Other policies provide medical expenses (no-fault (PIP), collision and lost wage replacement coverage respectively).
Property damage limits on policies are usually expressed as three numbers, such as 20/40/10. This indicates the bodily injury coverage limit and property damage liability limit respectively. You can supplement your car insurance with additional policies like uninsured/underinsured motorist coverage which provides compensation in the event that an at-fault driver does not carry enough coverage or no coverage at all.
Additional drivers opt for comprehensive and collision coverage on their policies. Collision insurance pays the costs associated with repairs or replacement resulting from an accident regardless of who was at fault; while comprehensive covers theft or damage from other causes such as flood, fire, earthquake, windstorms hailstorms vandalism etc.
Add comprehensive and collision coverage to your auto policy as a cost-effective way of protecting yourself against financial loss in case of an accident. While your state might not require it, if you take out a loan for your vehicle it will likely require this coverage until your loan is paid off.
Uninsured/Underinsured Motorist Coverage
Even if you are an attentive driver, accidents with uninsured/underinsured drivers still pose the potential threat of catastrophic harm to you and your vehicle. Uninsured motorist coverage (UM) protects you from having to cover medical expenses and car repair costs should such an event arise.
UM/UIM coverage typically provides bodily injury and property damage coverage with two limits available – per person and per accident. Like liability policies, it may also feature a deductible; typically insurance professionals recommend choosing higher limits of UM/UIM than liability coverage for greater financial protection.
UM/UIM policies typically cover up to $50,000 per person; however, certain insurers provide higher limits. You can also choose to add UIM coverage as an add-on policy at an additional cost; in that way, in case of an accident your own policy would apply first and then any uninsured or underinsured drivers up to your liability coverage amount will also be covered by your UM/UIM coverage.
MoneyGeek reports that this coverage is essential as many drivers either lack adequate insurance to cover an at-fault accident, leaving you to cover medical bills and repairs or replacement of your vehicle if involved with one of these irresponsible drivers.
Not only should you have uninsured/underinsured motorist coverage in place, it is legally mandated in New Hampshire and Virginia – though optional in Rhode Island – with more uninsured drivers on the roads, it has never been more important to increase UM/UIM coverage limits and consider adding on collision deductible waiver coverage as this can help lower premium rates by covering your auto deductible in case damages from uninsured or underinsured vehicles occur. Not all insurers offer collision deductible waiver policies but adding them on could help save on premium rates significantly and keep premium costs under control by keeping premium rates lower overall.
