Bodily Injury Liability – when you are in an accident and you ARE at fault, and cause injuries to other people, Bodily Injury Coverage will pay the amount you must pay for the non-at-fault person(s) medical bills, pain & suffering, doctor, hospital and medical costs, possible funeral bills, wages lost from time away from work, re-hab, & nursing home expenses. There are limits to this type of insurance coverage, and if you are underinsured, you could be responsible for any excess amount that is not covered by your insurance limits.

Comprehensive Coverage - comprehensive coverage protects your vehicle in the event of something other than an accident with another vehicle such as a tree falling on your car, or vandalism, or if your car catches fire from a broken gas hose. It is usually an “Optional” coverage that comes with a deductible amount. The higher your deductible, the lower your annual insurance expense. This is because if you have to pay for more of the damage should something destroy your car, the less the insurance company will have to pay. Therefore the coverage costs less when the deductible is high.

Collision Coverage – This protects your vehicle when you have damage from an accident with another vehicle, or any other body, a wall or post for example. The coverage has a deductible that you must pay before the insurance company pays for the balance of the cost to repair. For example, if you have a $1,000.00 deductible, and the damage is $3,000.00, you will have to pay the first $1,000.00 and the insurance company will pay the $2,000.00 remaining balance. If you have an old, used vehicle that’s already paid for, sometimes it is better to waive this type of coverage. Ask your agent.

Comprehensive & Collision – means exactly that, Total Coverage to protect you from a liability standpoint, PLUS damage to property such as your car in the event of an accident with another vehicle or object, or damage to someone else’s property. In other words, it is Property Damage and Liability Insurance together. This type of insurance also has a deductible that you can choose. The lower the deductible, the greater the cost of insurance. Usually you want a deductible that is in line with the amount of cash that you have on hand to cover the deductible amount if you were in an accident. If you don’t have much in savings, chances are you shouldn’t have a $1,000.00 deductible. $250.00-$500.00 would be better.

Personal Injury Protection – PIP insurance covers doctor and medical bills for you and for whoever else was riding in your car at the time of an accident. It is usually optional; however, some states require it. PIP is generally No-Fault meaning that it kicks in no matter who is at fault in the accident. Check with your agent in your home state to see what is required, or here on this website. As with all coverages, it’s better to have too much insurance than not enough, so, just because it may not be required in your home state, doesn’t mean that you should go without it, especially if you have a lot of people riding in your car most of the time; carpooling for example.

Property Damage Liability – Basically this covers damage to the property of others if you are in an accident, whether it be to their car or any other property that you destroy as a result of the accident. If your brakes didn’t work and your car ran into someone’s living room, Property Damage Liability Insurance would be good to have! If you are in an accident, Property Damage Liability may also pay for legal fees for an attorney that may have to defend you in a court of law. If you feel that you’re just an average driver, you may want to consider this type of coverage.

Uninsured Motorist/Underinsured Motorist - Not all states require that you have UM insurance, however, this insurance protects you if you have an accident with a person who has NO insurance or not enough insurance. If they don’t have enough insurance to cover your losses, then your insurance kicks in to make up the difference after the Underinsured Motorist insurance amounts are exhausted. If the other motorist is completely uninsured, then your UM insurance kicks in immediately up to the point of your coverage limit. This type of coverage can cover lost wages on your behalf if you cannot work for a specified period of time as well as pay for emergency room, hospital, and medical bills. It can also pay for pain and suffering that you could experience. As with all types of coverage’s, there are limits, the higher the limits, the more the insurance costs. In states when there are high incidents of drivers who have no insurance, this insurance might be a good idea to have. Also, people who have no health insurance may benefit from Uninsured Motorist Coverage.