There are many different levels of coverage offered by car insurance companies, from very basic liability coverage to collision and comprehensive insurance. Knowing what is covered by each type of car insurance can help you to understand what type of insurance you need.

Liability Insurance

Liability coverage is for bodily injury and property damage to others when you cause an accident. Bodily injury covers medical costs for others and it can also pay for your legal expenses incurred because of the accident. Property damage coverage pays for any damages caused by you and any legal expenses related to the property damage caused. Each state has its own minimum liability coverage requirement.

Uninsured or Underinsured Motorist Insurance

Many states also require uninsured or underinsured motorist insurance to pay for damages caused to you, your passengers or your vehicle if you are in an accident caused by a driver with no insurance, or not enough insurance. This insurance may also pay for your lost wages or other damages.

Medical and Personal Injury Protection

Medical insurance covers medical expenses resulting from an auto accident. Some health insurance policy’s coverage is redundant with this medical coverage and it may not be needed.

Personal Injury Protection (PIP) adds to the medical insurance by also covering the costs of things like childcare or funeral services.  Many no-fault states require PIP and in others it’s optional.

Collision Insurance

Collision insurance is often required if your car is financed or leased. It will pay for damage to your vehicle if you are in an accident, whether it is caused by you or by someone else. There is often a deductible and the insurance company will decide if they want to pay to have your car repaired or if they want to “total” the car. If the repairs are more than a certain percentage of your car’s actual cash value, then they will choose to total the car and pay you the cash value, not the replacement cost of your car.

Comprehensive Insurance

Comprehensive insurance covers any damage to your vehicle that is not caused by an auto accident, such as vandalism, falling objects, floods, natural disasters, fire or theft. Like comprehensive insurance, the insurance company will determine whether it’s worth it to repair your car or total it.

Additional Coverage

Many car insurance companies offer optional services to be added to your insurance policy. These include:

• Rental car reimbursement
• Roadside assistance or towing

Knowing what each type of insurance covers can help you to decide which coverage you need and which you can do without. The required coverage for each state differs, so check your local insurance requirements to find out which are necessary and which are optional.

This article is for informational purposes and does not constitute legal advice. Please contact an attorney in your local area for more information about car accidents.

Further Related Legal Information: For more information on personal injury in Long Island visit WurtzelLaw.com