If you drive, you need auto insurance coverage. But just exactly which type of coverage should you have, and which ones are you required to have? Following are the key features of auto insurance (depending on your unique circumstances, you may or may not need all these features):
- Collision: If you’re in an automobile accident, regardless of who is at fault, collision insurance provides protection to replace or repair your vehicle, subject to a deductible.
- Comprehensive: In the event of hail damage or a tree limb falling on your car (risks not involving an automobile collision), this coverage insures you. Comprehensive coverage pays to repair your vehicle, subject to a separate deductible.
- Personal injury protection: This type of insurance coverage is for medical and other expenses resulting from an automobile accident for the people specified in the policy, regardless of who is at fault in the accident.
- Medical payments: This feature provides a limited amount of coverage for you and your passengers’ medical expenses as a result of an accident. The coverage pays regardless of who is at fault.
- Bodily injury and property damage liability coverage: The insurer agrees to pay damages if you injure someone or his property in an auto accident.
- Uninsured and underinsured motorists liability coverage: If you’re in an accident with another driver who doesn’t carry any or enough liability coverage, uninsured or underinsured motorists liability coverage allows you to collect damages that you personally experience from the accident.
The following table lists commonly recommended limits and deductibles for various coverage involved in basic auto policies.