Auto insurance is a requirement in most states, but that doesn’t mean it’s easy to shop for. In addition to the high cost of the annual premiums, the many types of coverage can be confusing to understand and choose from. The good news is that the many choices in auto insurance coverage allow you to tailor a policy that will meet your unique needs. This article will give you the basics of the coverage options available so you can find the policy that works the best for you.
Coverage for You
The first type of coverage will cover you in the event you are injured in an accident. It will also cover your vehicle. Personal injury protection, also known as PIP, offers coverage for your medical expenses and lost wages in the event you are injured. In Pennsylvania, a set amount of personal injury protection is required as part of your auto insurance policy. You can also purchase coverage for your vehicle through both collision and comprehensive coverage. Collision covers damage to your car that is the result of an accident. Comprehensive coverage protects your vehicle from theft or damage due to natural disasters like flooding. Some people don’t purchase a large amount of collision and comprehensive coverage because the cost of the coverage may be more than the value of the car. You can also adjust your deductibles for these coverages to adjust the premiums to your liking.
Coverage for Others
Most states, including Pennsylvania, will also require you to purchase coverage that protects others that you might injure in an accident. This is known as liability coverage, and it includes persons as well as property. Bodily injury liability covers individuals that might be injured by your vehicle. The coverage includes medical expenses and lost wages, just like personal injury protection. However, the coverage might also include compensation for pain and suffering when applicable. Property damage liability covers damage to other vehicles or property in the event of an accident. Most states will require a minimum amount of coverage in this area, to ensure drivers are prepared to compensate victims of accidents appropriately. In Pennsylvania, the minimum amount of bodily injury liability is $15,000 with a maximum of $30,000. Property damage liability is required in a minimum of $5000.
By breaking down the various coverages in this manner, it is much easier to determine precisely how much coverage you might need. Once you have an idea of the specific coverage you are looking for, you can shop insurance companies to find the best rate.