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Auto Insurance Coverage: Personal Injury Protection Option

Car insurance Personal Injury Protection Coverage is an option for private passenger vehicles. Under this auto insurance coverage, the medical, hospital, and funeral expenses of the insured driver, any passengers in the insured car, and any pedestrians are covered. Personal injury protection coverage is only available in certain states.

Amount of Car Insurance Needed Depends on You

When you purchase a car insurance policy, don't think "spending all you can afford" is the correct rule of thumb. Instead, ask yourself these five questions to determine the auto insurance coverage that is right for you.

1. What is the minimum car insurance coverage required by law in my state of residence?
2. What does this minimum auto insurance cover?
3. What other car insurance coverage is available?
4. What am I protecting?
5. What can I afford?

Shopping for car insurance online is a quick way to do your research quickly and thoroughly. You can compare the coverage and the costs.

Required Car Insurance Coverage Varies by State

The car insurance coverage required by law varies from state-to-state; however, most states require a minimum amount of Liability Coverage.

Liability coverage insures you, your spouse, family members, and anyone who uses your auto with your permission. The amount of liability coverage you select determines how much the auto insurance company will pay you in the event of an accident.

Auto Insurance Coverage: Medical Payments Option

Car insurance Medical Payments Coverage is an option for private passenger vehicles. Under this auto insurance coverage, the insured driver and his/her passengers, if injured in an accident, have their medical expenses covered.

The insured driver is also covered if he is hit by another car as a pedestrian. Medical payments coverage pays the insured regardless of who is at fault in the accident, but varies based on the amount specified in your car insurance policy.

Auto Insurance Coverage: Liability Option

Most states require car owners to have a minimum amount of car insurance Liability Coverage. Liability coverage insures you, your spouse, family members, and anyone who uses your auto with your permission. The amount of auto insurance liability coverage you select determines how much the car insurance company will pay you in the event of an accident.

Auto Insurance Coverage: Collision Option

Car insurance collision coverage is an option for private passenger vehicles. Under this auto insurance coverage, the insured car is covered for physical damage that occurs when the it collides with another vehicle.

Coverage varies based on the amount specified in your car insurance policy. Owners of older cars with low market value should consider removing collision coverage from their auto insurance policy since the maximum collision coverage is the value of the car itself. If you are concerned about keeping your premiums low, select a high deductible for your auto insurance collision coverage.

Auto Insurance Coverage: "No-Fault" Insurance

Approximately half of the states in the U.S. have enacted legislation for some type of No-Fault Car Insurance. In these states, the victim of an auto accident is paid by his/her car insurance company. Fault is not determined.

No-fault auto insurance was created in an attempt to reduce the number of car insurance claims and litigation. No-fault car insurance laws vary greatly from state-to-state and may or may not cover you when you drive outside the state in which your auto insurance is issued.

Auto Insurance Coverage: Bodily Injury Liability Option

Car insurance Bodily Injury Liability Coverage is an option for private passenger vehicles. Under this auto insurance coverage, bodily injuries that the insured driver causes to other people are covered.

Claims against Bodily Injury Liability include:

* Medical expenses
* Lost wages
* Emotional suffering.

It does not cover damage to your car. Bodily injury liability coverage varies based on the amount specified in your car insurance policy.

Auto Insurance Coverage: Comprehensive Physical Damage Option

Car insurance Comprehensive Physical Damage coverage is an option for private passenger vehicles. Under this auto insurance coverage, the insured car is covered for physical damage caused by forces other than a car collision.

Examples of covered damage include:

* Losses caused by climate
* Losses caused by animals
* Losses caused by fire

Comprehensive insurance coverage also covers damages incurred if the auto is stolen, but varies based on the amount specified in your auto insurance policy.

* To keep premiums low, select a high deductible for your Comprehensive Physical Damage coverage.

Required Car Insurance Coverage Varies by State

The car insurance coverage required by law varies from state-to-state; however, most states require a minimum amount of liability coverage.

Liability coverage insures you and your family and anyone who uses your car with your permission.