If you're shopping for auto insurance, it can get confusing.
The first step is to find out the minimum insurance level you must hold under your state laws.
Unfortunately every state is different!Still, so that you can understand what the different requirements and options are all about, here's a list of definitions that are often used in auto insurance information.
Bodily Injury We all know that medical expenses in the US can be very high.
If you cause an accident and the other driver is hurt, then bodily injury insurance will keep you protected.
It covers the other driver's medical expenses, which means there's no need for the other drive to sue you for medical damages.
This type of coverage is very important, because medical expenses can easily damage your finances beyond repair.
Property Damage If you're at fault in an accident, and the other driver's car needs repairs, then this insurance will cover those costs.
Without this coverage, you would have to find the money to pay for the repairs out of your own pocket.
That mightn't sound too bad, but what if the car you collide with is an expensive sports car?All of a sudden you could find yourself having to fork out huge sums of money for repairs.
Personal Injury This type of coverage is designed to protect you in any car accident.
It pays some or all of your medical expenses, and also covers your lost wages while you're unable to work.
There are also death benefits available under some coverage, which can be paid to your relatives.
It covers your medical expenses even if you're found to be at fault.
Uninsured Motorist Much as we'd like to think that every other driver on the road is carrying the minimum level of insurance, the reality is that there's plenty of uninsured drivers out there.
This coverage protects you in an accident that isn't your fault, and where the other drive doesn't have insurance.
It will help you to cover costs of repair or replacement of your vehicle, and also your medical costs (apart from the costs covered by your personal injury insurance).
Comprehensive This can be expensive, but you certainly get peace of mind.
It covers all accident related costs, no matter who is found to be at fault.
It can also be useful in a situation where another driver is at fault, because generally your insurance company will handle all the details of the claim on your behalf.
So you won't be left waiting months or even years while you're trying to get costs from the other driver or his insurance company.
It often includes cover against vandalism, fire, weather related incidents and theft.
Collision This covers damage to your car if you're found to be at fault in an accident.
If the car is completely destroyed, then you're paid cash value for the car.
If you hold finance against your vehicle, you will probably find that you need to hold collision damage as well as coverage for any damage caused by your vehicle.
Now that you understand the different types of auto insurance that are available, you will find it easier to find the right coverage for your needs.