| You need auto insurance because you are liable | | | | Personal injury protection pays medical expenses |
| by law to pay for losses you cause to others in | | | | for covered individuals despite who is at fault for |
| the event of an automobile accident. Purchasing | | | | the accident. It also covers rehab, lost wages, |
| auto insurance is the surest way to guarantee | | | | replacement of services and funeral expenses. |
| you will be able to fulfill your end of the bargain. In | | | | Medical payment coverage pays medical and |
| some states it is required that you have minimum | | | | funeral expenses regardless of fault when the |
| forms of insurance in order to drive. You also | | | | causes of these requirements are due to an |
| must have insurance in order to finance a car. | | | | automobile accident. Collision coverage pays for |
| One of the first questions you will be asked when | | | | damage to an insured vehicle caused by collision |
| obtaining automobile insurance is how much of the | | | | with another vehicle or object. Your deductible will |
| covered loss or deductible do you want to be | | | | apply to collision coverage. |
| your responsibility? You may choose between | | | | Comprehensive coverage pays for loss of or |
| $100, $250, $500, or $1,000. The higher your | | | | damage to an insured vehicle unless is damaged |
| deductible the lower your premium however you | | | | or lost as the result of a collision. Comprehensive |
| must keep in mind that the deductible is the | | | | would cover losses due to theft, fire, wind, hail, |
| amount you must pay before your insurance will | | | | flood, vandalism or impact with an animal. Your |
| assist you. If you cannot afford to pay the first | | | | deductible will apply to comprehensive coverage. |
| $1,000 of the covered loss you may want to | | | | Uninsured motorist pays for loss or damage |
| consider how much you can afford and choose a | | | | caused by another driver who does not have |
| lower deductible. | | | | liability insurance. Underinsured motorist coverage |
| Your insurance coverage is broken down into | | | | pays when the insured driver is injured in an |
| each purpose you would need to be covered for. | | | | automobile accident caused by a driver who has |
| One of the most common coverages include | | | | an inadequate amount of liability insurance. Rental |
| liability which pays out when the insured driver is | | | | reimbursement pays rental vehicle costs when |
| legally responsible for bodily injuries and property | | | | your vehicle is put out of commission as the |
| damage they cause to others. Bodily injury | | | | result of an automobile accident. Daily monetary |
| damages cover medical expenses, pain and | | | | limits may apply. Emergency roadside assistance |
| suffering, lost wages and other special damages. | | | | coverage pays towing expenses when your |
| Property damage includes damaged property and | | | | vehicle breaks down. Distance limits may apply. |
| loss of use. Liability also pays legal defense | | | | Your policy will generally cover you, your spouse |
| expenses. Each state has a set minimum amount | | | | children and other family members who reside in |
| of coverage you must carry but you may opt | | | | your residence as well as anyone else who has |
| for higher amounts. | | | | permission to drive your covered automobile. |