Types of Car Insurance (Part 2)

Personal Injury Protection (No-fault) – Many states require that you carry this type of insurance. This coverage pays benefits for the cost of injuries to you or your passengers resulting from an automobile accident regardless of who was at fault in the accident. It also applies to you and relatives living in your household who are injured in other automobiles or who are struck by a vehicle while walking. The main benefit of this coverage is that in an accident each driver’s expenses are paid by his/her own insurance without the need for legal proceedings to determine financial responsibility for the accident.

Collision – Collision pays for repairs of damage to your car caused by a collision with another vehicle or any other object, regardless of who was responsible.

Comprehensive Physical Damage – Pays for damages to your car resulting from theft, fire, vandalism, weather-related damage and many other causes.

Uninsured Motorist Coverage - Pays damages for physical injury or death caused by an uninsured driver or a hit and run driver who is legally responsible for the accident. Since not all states require drivers to purchase insurance, Uninsured Motorist coverage is essential to protect yourself.

Underinsured Motorist – Pays benefits for bodily injury or death caused by an insured driver whose Liability coverage limit is insufficient to cover the losses incurred. The benefits are paid to you and any passengers in your vehicle, or to any pedestrian you injure.

Source: autoinsuranceadvocate.net