According to the auto insurance law of District of Columbia, each person must purchase a minimum liability limit of $25,000 for bodily injury per person and the total limit is $50,000 per accident. The statutory minimum limit for liability coverage for property damage is $10,000. This coverage is known as 25/50/10 coverage and the limits are termed as 25/50 UM Limits. Washington, DC differs from the other states of the United States regarding auto insurance policy. Even though every driver should have some kind of liability coverage, different options had been provided for the person purchasing insurance policy. Unlike the other states, Washington, DC is not a tort district but is known as a no fault auto insurance coverage district.
Selecting the right type of auto insurance coverage is not an easy job and at times, it could even be confusing. However, the major types of auto insurance coverage are presented here briefly.
Liability Insurance Coverage
The liability coverage is the ideal auto insurance policy for any driver, because it covers bodily injuries, as well as property damages. With this policy, you could claim medical costs, property damage, your wage losses, and other legal defense expenses in case of a lawsuit. The liability coverage should be according to the statutory limits set by the state, known as 25/50/10.
Personal Injury Protection Coverage
Another option in Washington, DC is personal injury protection coverage, known as PIP coverage. Since the state is a no fault state, this coverage could be availed for you and the other passengers that might be with you in the car, if an accident occurs. The personal injury protection policy would cover medical expenses, funeral expenses, and wage losses. Under this coverage, the limits are set as 25/50/5, meaning the minimum bodily injury coverage limit is $25,000, total limit covering all the persons per accident is $50,000, and property damage coverage limit is $5,000. If an uninsured person gets involved with your vehicle in an accident, this coverage would protect you adequately.
The comprehensive coverage auto insurance policy would protect you against ‘Acts of God’, such as theft of the vehicle, fire damage, collision with animals, and other unforeseen natural acts. This coverage is most useful for new vehicles.
If you are at fault in an auto accident, this collision coverage policy is the right one to protect you. If your vehicle is new or if you wish to purchase the vehicle through a car loan, this collision auto insurance policy coverage would be required.
The medical coverage auto insurance policy would provide you protection when people involved in an accident suffer bodily injury and the medical bills of all the persons had to be met. Under this policy, the claim could be made as soon as the accident occurs. Since the medical expenses of the injured persons are taken care of immediately, lawsuit at a later date could be avoided through this medical coverage. You could extend the coverage to include salary losses also.
District of Columbia Auto Insurance Rates
Washington, DC ranked third highest in insurance expenses in the United States, according to a survey conducted in 2003. The average total insurance coverage expenditure was found to be about $1,129.31, with $604.67 for liability insurance coverage, $244.29 for comprehensive insurance coverage, and $428.23 for collision insurance coverage. Another survey shows that the average insurance cost in October, 2008 had risen to $2952 in Washington, DC.