Auto Insurance Coverage and Car Accidents

Every state in the United States requires that drivers maintain at least the minimum-required state vehicle insurance coverage in order to legally operate a vehicle. Each state’s minimum coverage may vary, including what the minimum coverage provides for drivers and the pricing. However, when it comes to car accidents and collisions, most minimum coverage insurance, also known as liability insurance, will only cover the damages done to another’s vehicle during the event of an accident, which is why it’s highly advised for drivers to consider adding extended coverage to their policy in order to protect their own property.

State Minimum Coverage
Liability coverage protects you in the event that you are involved in an accident in regards to covering the damage of another party’s vehicle. Although this coverage will protect you against the damages that occur to another’s vehicle, it does not protect your own property or bodily damage. The limits for how much will be covered is dependant upon your state’s minimum monetary requirement, and by what limit you choose. For example, your state’s minimum monetary coverage may be 10/100, meaning that the insurance company will cover $10,000 for each person you need to compensate, up to 10 people. However, you can choose a higher liability coverage, such as $20,000 per individual if you choose. If you choose the lowest legal coverage available, and the injured party’s medical expense is over the amount you are covered for, you may need to personally pay for the remainder.

Collision and Comprehensive Coverage
Along with liability coverage, you have the option to obtain both collision and comprehensive coverage. Collision coverage will protect your vehicle in the event that you have a collision with any object, such as a pole, tree, wall, or another vehicle. Comprehensive collision will pay for your other losses that’s not a result of a collision, such as theft, vandalism, weather-related damages, and more. When you choose collision and comprehensive coverages, you will also need to choose a deductible in most states, meaning you will be required to pay an up-front fee in the event of an accident. Deductibles, in most cases, range from $250 to $500, but will be dependant upon your state and your insurance company.

Uninsured or Underinsured Motorist
This coverage, although optional, is highly recommended. If you are ever struck by another driver who has no insurance or doesn’t have enough coverage in liability insurance, uninsured or underinsured motorist coverage will protect you. This also applies if you are involved in a hit and run incident.

Additional Optional Coverages
In addition to the aforementioned coverages, you can also additional protection to add to your policy. Medical Payment Coverage (MPC) will compensate for you for medical, dental, and funeral services in the event of an accident. You also have the option of choosing rental reimbursement coverage, which covers the expense of the use of a rental car while your own car is being repaired. In addition, towing and road emergency coverage can be added to insure that you are protected in the event that your vehicle is inoperable and needs to be towed.

Keep in mind that a car accident lawyer possesses the knowledge and expertise of the legal process in the event of an accident or a collision.

Source: http://www.naic.org/documents/consumer_alert_understanding_auto.htm

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