Bodily Injury Liability
Bodily injury liability covers the designated driver or policyholder if they injure others. If you have family members listed on your policy, they are also covered if driving another person’s vehicle with their permission.If you opt for the minimum liability coverage, be careful- the amount you purchase may not completely cover you if you are involved in a serious accident or are served with a lawsuit. Buying more than the state’s minimum requirement will protect your assets- like your home, boat, and savings- if you get into an accident.
Medical payments (or personal injury protection plans) pay for the care of injuries to the driver and passengers of the policyholder’s car in the event of an accident. Depending on the amount of coverage you choose, medical payments coverage can cover medical costs, lost wages, and possible funeral costs.
Property Damage Liability
Property damage liability coverage covers the damage you, or someone driving your car with your permission, does to another person’s property. Usually, this includes damage to lamp posts, telephone poles, buildings, fences, or other structures you may hit.
Collision coverage covers damage that to your car that results from a collision with another vehicle or object. This type of coverage also covers your car against damage from potholes, or if it flips over. You can choose a relatively low deductible or a high one- but keep in mind that a higher deductible will result in a lower premium.
If you car is stolen or is damaged by something other than a collision with another car or object (i.e. fire, falling objects, explosions, hail, vandalism, etc.). Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage with or without a deductible.
Uninsured and Underinsured Motorist Coverage
If you are hit by an uninsured driver, or are the victim of a hit and run accident, this type of coverage will reimburse you, a member of your family, or a designated driver. Underinsured motorist coverage is used when an at-fault driver does not have enough insurance to pay for the costs to repair your vehicle. This coverage can also come into play if you are hit as a pedestrian.