Most American drivers are somewhat familiar with car insurance terms; however, when a person is involved in a motorvehicle accident, understanding insurance terminology and becoming familiar with policy limits takes on a whole new signifance. While you’ll likely become familar with insurance lingo after an accident, it is a wise idea to have a thorough understanding of care insurance policy and coverage options before you step foot in a vehicle. We have included a basic overview of some of the common insurance coverage options available below.
Bodily Injury Liability Insurance
Bodily Injury Liability Insurance generally covers the other driver or passenger’s medical bills when one driver is found at fault for the accident. Bodily injury liability insurance differs slightly depending on policy plan and insurance company, but often times this type of insurance will cover the following expenses:
• Medical expenses for bodily injury
• Compensation for loss earnings
• Funeral Expenses
• Legal defense fees
Personal Injury Protection
Personal injury coverage (PIP) is a type of no-fault insurance coverage that compensates car accident victims for medical damages. PIP covers only certain medical expenses and there is a limit per person and per accident of how much money can be recovered for medical expenses.
Expenses that are often times covered, to some degree, by PIP include:
• Medical Expenses
• Hospital Stays
• Lost wages
• Funeral costs
Collision Coverage Insurance
Collision coverage helps drivers pay for damage to their vehicle that occurs from an accident caused by the driver. If it was someone else’s fault, then their insurance will cover the cost of the car repair up to a certain amount dictating by policy limits.
Comprehensive coverage is a car insurance policy that covers the cost of damages to your car caused by natural disasters, fire, robbery, theft, vandalism, among other scenarios. Collision coverage is subject to specific terms and conditions that vary depending on your insurance company and specific policy agreement.
Uninsured and Underinsured Motorist Coverage
Uninsured motorist coverage covers the cost of damages in the event that you are hit by another driver who either does not have insurance or who has very little insurance coverage, insufficient to cover the cost of your damages . Uninsured motorist coverage also pays for medical care for you and your passengers, and funeral costs up to a certain amount. Hit and run victims and accidents involving pedestrians and bicyclists can also receive compensation under this policy.