If you drive a vehicle, you need to be insured. Only a good policy can provide crucial protection in the event of a serious situation, but personal auto or motorcycle insurance can get quite complicated. It is easy to become confused with lots of options that are available. This is where a qualified and honest agent comes in. Here at Fidelity Insurance Partners, our agents are dedicated to helping you gain an understanding of auto or motorcycle insurance and what it can do for you.
There are six common types of personal auto insurance coverage to consider. Some of these types of coverage might be mandatory. Rules vary by state.
This coverage is mandatory in most areas. It can help pay for costs related to the vehicular or property damage of another party when you are at fault for an accident. Some liability policies also cover bodily damage to another party along with property protection.
Uninsured and Underinsured Motorist
Not everyone follows the rules. Although insurance is required in all 50 states, you could still get into an accident with an uninsured motorist. Uninsured and underinsured motorist policies provide protection in cases where a driver lacks the minimum insurance coverage. It can help pay for your medical bills. In some circumstances, it can cover the cost of vehicular repairs.
Your vehicle could become damaged because of something other than an accident or rollover. A comprehensive auto insurance policy includes protection for damages caused by events like hailstorms, fires, falling objects, vandalism, and more.
This type of policy usually has a set deductible and pays out when the costs to repair the damage go beyond that amount. Since it will never pay out an amount greater than the vehicle’s current worth, it is best for newer vehicles. Although not mandated by the government, it is required by most financing companies to set up a payment plan for the vehicle. Once you have paid off your vehicle and become its official owner, you can drop comprehensive coverage if you choose to.
This coverage is very simple. It helps pay for the damages caused by an accident on the road. The accident can involve other vehicles, or it can involve a tree, a fence, or some other structure. Accidents that do not involve collisions, such as single-car rollovers, are also covered. Much like comprehensive coverage, collision coverage is required by financial institutions as a requirement for getting a vehicle loan.
You may want additional coverage in case you or a significant one get injured in a car accident. You can add this type of coverage onto an existing policy to make the protection stronger. The coverage usually extends to yourself, your family, and any additional passengers who may be riding with you at the time of the accident.
Personal Injury Protection (PIP)
This option is available in certain states. It provides additional coverage to protect you in the event of an injury. It is similar to medical payments coverage, but it offers additional protections. For example, a PIP policy may provide coverage for wages that are lost due to being unable to work after an injury. It can also sometimes cover additional expenses, such as home cleaning services if your injury left you unable to do household chores.
If an accident caused the death of yourself or a loved one, your PIP policy would cover the funeral and burial fees. In certain states, this type of coverage is mandatory. Be sure to ask your agent about the relevant laws and regulations in your area.