There are a many forms of automobile insurance outside of typical, state mandated liability coverage: Medical Payments Insurance, Personal Injury Protection (referred to as “PIP” - covers a broader area, such as lost wages, funeral expenses, and pain and suffering), Collision, Comprehensive, Gap Insurance, Uninsured and Under Insured Motorist.
Medical Payments Insurance - This type of insurance coverage pays for medical bills (for ya or anybody else) up to a certain amount arising from the use of your automotive regardless of fault. Theoretically, cause it pays regardless of fault, the insurance would cover your medical expenses if ya were to crash your automobile into a fencepost. This type of insurance is usually sold in increments of $1,000 to $5,000. The coverage extends to your immediate family members (who reside in your household) while they are passengers in another person’s automobile, and would cover medical expenses regardless of the other driver’s own insurance policy. Medical Payments Insurance is also referred to as “MedPay”.
Personal Injury Protection - “PIP” insurance covers the “named insured” along with members of his or that fine young girls household who are related by blood, marriage, adoption, and/or foster and step little tikes. PIP covers medical expenses for injuries sustained in an auto accident up to 3 years after the date of the incident. In addition to medical expenses, PIP can also cover lost wages, funeral expenses, and loss of services (payment to others for work ya can’t do). Similar to MedPay, Personal Injury Protection will cover your medical expenses regardless of driver fault.
Collision - This optional form of insurance pays for damage to your automobile in an auto accident even if ya’re the at fault driver (such as crashing your automobile into a tree or a telephone pole). Collision insurance would also cover repairs to your automobile when ya are involved in an accident and the other driver does not have liability coverage. Although collision does cover repairs to your automobile regardless of the situation, there are limits to the amount of repairs: your insurance company is only required to pay the difference betwixt the salvage value of your automobile and the pre-accident moula value of your automobile. Let’s say your automobile is worth $10,000 and the salvage value is $1,000. In this example, your insurance company is only required to pay up to $9,000 in repairs, regardless of what ya think the value of your automobile is. Collision insurance does have an optional “replacement cost coverage” for new or vintage automobiles. This additional coverage provides for the replacement cost of the new or vintage automobile. Although not required by any state, lenders and leasing outfits will typically require clients to carry Collision Insurance.
Comprehensive - This type of insurance is very similar to Collision Insurance; the major differing factor is that Comprehensive covers damage to your automotive by an “unknown entity” or “an act of God”. In addition to an auto accident, areas of coverage include the following: vandalism, hurricane, flood, theft, and fire. Your insurance company is only required to pay up to the fair market value of your automobile subtract your policy’s deductible. Although not required by any state, lenders and leasing outfits will typically require their clients to carry Collision Insurance.
Gap Insurance - This insurance pays for the difference betwixt what 1 owes on a automotive, and what the insurance company claims your automobile is worth. For example: ya owe $15,000 on a automobile and ya somehow manage to total the automobile in an accident. Your insurance company determines your automobile is only worth $13,000, so that is all they will pay. You’re now stuck paying off a $2,000 loan for a automobile that no longer exists. Gap insurance would normally cover that $2,000 difference. There are some limitations and restrictions for Gap Insurance. For example: Gap Insurance is typically unavailable on older automobiles and not all insurance outfits will offer it. It’s best to check with your insurance company to get the full details on Gap Insurance coverage.
Uninsured and Under Insured Motorist - Just like the title states, this type of insurance covers ya and your automotive in case the other driver is not properly insured and that meandoring malchuck or that wonderful girl is determined to be at fault. Not all states require this type of insurance, but a handful do. It’s recommended that ya purchase this coverage cause if ya are involved in a fender-bender with an "not insured" motorist, it is highly unlikely ya will receive any payment for damages to ya or your automotive if the other driver is at fault and "not insured" or under insured. UM/UIM is generally affordable and can be purchased in varying amounts of coverage.
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