• • • INSURANCE
INFORMATION
INSTITUTE
The i's on Insurance:
'"Got It, Need It, Want It"
Types of Auto Coverage
LIABILITY
Virtually every state requires a minimum amount
of liability insurance, but the required coverage is
pretty low. To be safe, buy additional coverage to
protect your assets— it can end up saving a lot of
money in the long run.
BODILY INJURY LIABILITY
Injuries, including fatal ones, which
you, as the insured driver cause to
someone else.
* required
PROPERTY DAMAGE LIABILITY
Damage your car may cause to
someone else's property—other
cars, fences, buildings,
lamp posts, etc.
* required
MEDICAL PAYMENTS OR PERSONAL INJURY
PROTECTION (PIP)
The treatment of your own or your passengers'
injuries. PIP also covers lost wages and the cost of
replacing essential services normally performed by
the injured party (e.g. housework).
required
COLLISION COVERAGE
An accident with another vehicle, or an object like a
tree or sign post. Collision coverage is generally sold
with deductible—the higher your deductible, the lowe
your premium.
* optional
COMPREHENSIVE COVERAGE
Damage caused by fire, falling objects, missiles,
explosion, earthquake, windstorm, hail, flood,
vandalism, riot or contact with animals (birds, deer etc.).
Sold with deductible.
• optional
UNINSURED/UNDERINSURED
MOTORISTS COVERAGE
If an uninsured or hit-and-run driver hits you or your
ocar—or if the other driver is at fault in an accident and
doesn't have enough insurance to cover your damages.
-May also protect you if you are hit as a pedestrian.
• often required
U-Rent-Um
RENTAL CAR REIMBURSEMENT
An add-on to your auto policy— pays for a
rental car while your own car is being
repaired due to covered damage.
* optional
-a
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