Car Insurance Basics

There are more drivers hitting the road each year. With countless vehicles on the road, accidents are going to happen. The difference between a little bother and major obstacle can be your insurance. But why do you need to own insurance and just how much should you buy? Coverage requirements vary by state/province, but typically include the following: Liability: Pays for expenses due to personal injury and property damage to others when you are responsible. Damages from bodily injury include medical fees, and lost wages. Property damage includes car repair costs and loss of use of property. It also covers your legal fees if you are sued. Recommended, higher levels of liability insurance can be purchased that cover more than the lower, state-mandated insurance. Personal Injury Protection: This is mandated in some states and is optional in others. It pays you or your passengers for medical treatment resulting from a crash, regardless of who may have been at fault, and is often called no-fault coverage. State government typically sets minimum amounts. Medical Payments: This coverage is available in states that are not considered no-fault; it pays regardless of who carries responsibility for a collision. If this policy has been purchased, the insured person will receive coverage for all types of medical or funeral costs. Collision: Damages that occur from a car accident will be paid for under this type of insurance. Comprehensive: Applies if your car is stolen or damaged by something other than a wreck, including fire, wind, hail, flood or vandalism. Uninsured Motorist: If you are hit by a driver without insurance or a hit-and-run driver, this type of insurance will make sure you are covered. Under-Insured Motorist: Similar to uninsured coverage, this type of insurance covers you from drivers without sufficient insurance coverage. Other types of coverage, such as emergency road service, are also available. Business Insurance Big Lake MN