In many states, auto insurance is required by law and if you are caught operating a motor vehicle with it, you could be facing penalties. Who wouldn't want to have auto insurance as they are driving? It is designed to protect you financially in the event of a collision or some other loss. We understand that every individual has different needs and that is why we are going to tell you about the different types of auto insurance. Each type has been designed to cover a certain loss or damage. It is not likely that you will need everything available, but you should know about the different types, so continue reading this article in order to gain the knowledge you need.
First of all, you have property damage. This type will be covering damage that is done by your vehicle to someone else's vehicle. Every state out there has their own minimum requirement of how much property damage insurance you are going to need. Take note that if the property damage you choose does not cover all of the damage, you could be sued for the rest of the money. Therfor, you should always purchase property damage insurance that you could afford.
Next on our list, we have personal injury. This type of auto insurance is normally required by the law as well. Generally, personal injury insurance pays about eighty percent of your medical bills as well as around eighty percent of the wages you lost if you were injured during an accident.
Next, we have bodily injury protection, which is generally not required, but I highly recommended. In the event when you are at fault in a motor vehicle accident, bodily injury insurance will protect you.
If the other individual is also injured in the crash, then your insurance is going to take effect. Otherwise, without this, you could be sued for their medical expenses.
Amongst them all, you also have collision coverage, when has been designed to reimburse your money up to the cash value of your vehicle. Take note that it is going to be less than your deductible if you are the one to blame for the accident. Generally, if your vehicle is financed through a car lot or bank, collision insurance is required. As you see, there are many different types of auto insurance, which we just told you about some of the important ones.
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