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 damage
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 (‘PIP’)?

A: PIP is “no-fault” coverage that will compensate for 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” states.


Q: What is “Property Damage Liability” (‘PDL’) insurance?

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’) insurance?

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 the judgment.


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, for example:
Theft Windstorm
Glass breakage

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