Personal automobile insurance protects you . . .
Liability (Bodily Injury and Property Damage)
Protects you against claims in the event you injure another person or damage someone else’s property in an automobile accident involving the covered motor vehicle. You should purchase limits high enough to provide adequate protection for your family and you. If you cause an automobile accident and do not have enough limits of insurance to cover your legal obligations, you could be held personally liable and would have to pay any debt incurred out of your own assets.
If a liability claim is filed against you, your insurance company will investigate it and decide whtether it should be paid, negotiated, or defended in court. The insurance company will also pay the legal costs of settling the claim.
Uninsured/Underinsured Motorist Coverage Provides benefits to you if a motorist who does not have insurance coverage or a motorist who is underinsured becomes legally liable for bodily injury sustained by you or for property damage to your vehicle. This coverage also provides protection for you if you are involved in an accident with a driver from a state that does not require compulsory insurance. A deductible applies.
Comprehensive Physical Damage Coverage (“Comp”)
Covers damage to your vehicle caused by fire, theft, flood, vandalism, or contact with a bird or animal.
Covers any direct or accidental damage caused to your vehicle by collision with another object or by the overturning of the vehicle. The loss must occur within the United States, its territories or possessions, Puerto Rico, or Canada.
Personal Injury Protection (PIP or “No Fault”)
No Fault lets you buy auto insurance protection that pays you right away regardless of who caused the accident. No Fault provides up to $250,000 per person per accident in Medical Benefits coverage. By law, these benefits are paid without regard to negligence, liability, or fault of any kind. It pays for hospitalization, doctors fees, rehabilitation, and other necessary medical expenses following an accident. Deductibles range from $250 to $2,500. After paying your deductible, you would then pay 20% of your
medical bills up to $5,000.