what does the car insurance cover
While there are different rules for car insurance in different states, most basic car policies consist of six types of coverage. Here is what you need to know about each.
While different states mandate different types of coverage, and there are a number of additional options (such as a gap in coverage), most basic motor vehicle policies include the following: Bodily Injury Liability, Personal Injury Protection, Property Damage Liability, Collision, Comprehensive, and Uninsured/Underinsured Occupant. Note that each type of coverage is priced separately, so there are differences in coverage amounts and prices. auto insurance
What Does Uninsured Motorist Insurance Cover?
If you are hit by an uninsured driver, your automobile liability insurance (UM) will pay for your injuries and, in some states, damage to your car. It also covers your passengers and family members living with you if they are hit by an uninsured driver.
In addition to medical expenses and the cost of repairing your car, it also covers funeral expenses and lost wages. Uninsured motorist insurance also covers you if you are hit as a pedestrian. Underinsured Motorist (UIM) coverage is similar to UM. It pays for your medical bills and other expenses if a driver who is underinsured collides with you. UM is mandatory in some states and optional in others.
In general, UM is good coverage to have. According to the Insurance Research Council, one in eight drivers is on the road without car insurance. When you buy UM, the amount of cover you have is usually the same as the amount of your third-party car insurance. For example, if you have liability insurance with auto insurance coverage of $100,000 for bodily injury and $300,000 for property damage in an accident, buy UM in that amount.
