| Auto insurance is designed to protect you | | | | an accident. If the other driver is injured beyond |
| financially in the event of a collision or loss. Every | | | | the limits of his personal injury coverage, your |
| customer has different needs so an extensive | | | | bodily injury insurance will take effect. Otherwise, |
| array of products are available, each designed to | | | | you could be sued for his medical expenses. |
| cover a specific type of loss or damage. It is | | | | If someone else is at fault in an accident in which |
| highly unlikely that you would need every single | | | | you are seriously injured, your expenses may |
| type of available insurance but you may need a | | | | exceed your personal injury coverage. If the |
| few different types. Therefore it is helpful to | | | | other driver does not have bodily injury protection |
| understand what each type of auto insurance | | | | one option may be to sue. However lawsuits can |
| does. | | | | be costly in both money and time, and if the |
| Property Damage | | | | other driver is unable to pay you may end up |
| Depending on jurisdiction, property damage | | | | with an uncollectible judgment. Uninsured |
| insurance may also be called liability insurance or | | | | underinsured motorist coverage is another option. |
| similar. This insurance covers damage that your | | | | This coverage will pay your medical expenses |
| vehicle may cause to someone else’s vehicle. | | | | when you are injured by someone who does not |
| Each state sets its own minimum requirement for | | | | have enough insurance. |
| how much property damage insurance you must | | | | Collision |
| carry, but the state minimum may not be enough | | | | Collision coverage is designed to reimburse you up |
| in the event of an accident. If you cause damage | | | | to the actual cash value of your vehicle, less your |
| that exceeds the limits of your insurance you | | | | deductible, if you are at fault in an accident. |
| may be sued for the difference. Always purchase | | | | Collision insurance is usually required if your vehicle |
| as much property damage insurance as you can | | | | is financed. Premiums are high and the insurance is |
| comfortably afford. | | | | generally not worthwhile for older vehicles with a |
| Personal Injury | | | | low cash value. |
| This type of auto insurance is also generally | | | | Comprehensive |
| required by law. Personal injury insurance pays a | | | | Comprehensive insurance covers the loss of your |
| portion (usually 80 percent) of your medical bills | | | | vehicle to theft or acts of God. As with Collision |
| and a different portion (often 60 percent) of your | | | | insurance, Comprehensive pays the actual cash |
| lost wages if you are injured in an accident. A | | | | value of the vehicle less your deductible. |
| small death benefit is often attached in case you | | | | Comprehensive is usually required on financed |
| are killed in the accident. This protection might | | | | vehicles but not worthwhile on older low-value |
| extend to relatives, household members or even | | | | cars. |
| anyone who happens to be in the car, depending | | | | Other auto insurance products will cover |
| on state requirements and the individual insurance | | | | everything from a rental car to medical payments |
| company’s policies. | | | | beyond your personal injury protection. Most of |
| Bodily Injury | | | | these products are worthwhile but not strictly |
| Although bodily injury protection is not required by | | | | necessary. If you have any questions regarding |
| all jurisdictions it is highly recommended that this | | | | your coverage options be sure to speak to your |
| insurance be purchased. Bodily injury insurance | | | | insurance agent. |
| protects you in the event that you are at fault in | | | | |