Q: Is automobile insurance required?
A: Most states have minimum coverage requirements that
may include, for example:
Medical payment coverage
Liability coverage for both personal injury and property
Insurance on vehicles that may be located in another
state or even if inoperable if they are registered
If your vehicle is financed, the lender may require
a specific type or amount of insurance
Q: What is "Personal Injury Protection" insurance
A: PIP is "no fault" coverage that will
compensate a loss due to injury, regardless of who is
charged with causing the crash. PIP insurance may also
protect you if you're injured as a pedestrian or bicyclist,
as long as the injury is caused by an accident involving
a motor vehicle. Only certain states are "no-fault"
Q: What is "Property Damage Liability" ('PDL')
A: This coverage pays for damages you or members of
your family cause (and are liable for) to other people's
property in a crash involving a motor vehicle. The damages
would include the vehicle but can also include real
estate damage (if you lost control and ran off the road
and hit a fence, deck or even a home) or even the contents
of the other party's automobile.
Q: What is " Bodily Injury Liability" (BIL')
A: Bodily Injury Liability coverage pays for serious
and permanent injury or death to others when you cause
an accident involving your automobile. Your insurance
company will pay for injuries up to the limits of your
policy and provide legal representation for you if you're
sued. In particular, your company pays for injuries
caused by you or members of your family who live with
you, even if they were driving someone else's vehicle.
It may also cover others who drive your automobile with
your permission. This coverage also provides you with
legal defense in the event the injured party sues you.
If you're sued due to an accident and the jury or judge
awards a verdict to the injured party larger than your
Bodily Injury Liability insurance limit, you may be
held personally liable for the difference to satisfy
Q: What is "collision coverage"?
A: This type of insurance pays for damages to your
auto caused by impact with another vehicle or object
such as a tree, telephone pole, building and so forth.
Q: What is "comprehensive coverage"?
A: Comprehensive insurance covers damage that occurs
to your auto in a situation other than in an accident,