Auto Insurance Coverages Explained

Personal Injury Protection (PIP)

Personal injury protection, or “PIP” coverage, covers you and other passengers covered under your policy for injuries you receive from an auto accident. This coverage pays your medical expenses no matter who is at fault for the accident.

Health Care Primary

If you have your own health insurance, you may have the option to use it as the primary source of coverage for injury from an auto accident. Selecting this option could save you money, but you must call your current health insurance provider first to make sure that they will cover injuries from an auto accident.

Extra PIP Coverages

Extra PIP coverages are additional benefits provided by PIP coverage and include: income continuation, essential services, death benefits, and funeral expense benefits coverage.

Income Continuation

If you are injured in an auto accident and cannot work, this coverage would pay you for lost wages and income.

Essential Services

This coverage pays for necessary services that you would normally perform yourself but can't because you were injured in an auto accident, such as: household chores, laundry, lawn care, and snow removal.

Death Benefits

In the case of death caused by an auto accident, surviving family members or your estate will receive any other benefits not already provided by income continuation and essential services coverage.

Funeral Expense Benefits

Also in the case of death caused by an auto accident, this coverage pays for reasonable funeral expenses up to the limit selected in your PIP coverage.

Liability

This coverage pays other drivers for damages from an auto accident that you are at fault for. It also provides payment for a lawyer to defend you if you are sued for damages that you caused.

Bodily Injury

This liability coverage pays other drivers who are injured from an accident that you caused.

Property Damage

This liability coverage pays other drivers for damage to their property caused by you. For example, if you are involved in an accident and it is considered to be your fault, property damage coverage would pay to repair or replace the other driver's vehicle.

How much liability coverage should you carry? Call us and we'll assign you to a licensed insurance agent to assess your needs and give you the best option and price.

Uninsured Motorist

This coverage pays you for property damage or bodily injury if you are in an accident caused by someone who does not have auto insurance at all.

Underinsured Motorist

This coverage pays you for property damage or bodily injury if you are in an accident caused by a driver who has insurance, but who doesn't have enough coverage to pay for the total damage they caused. For this coverage to go into effect, your underinsured motorist liability limits need to be higher than the other driver's bodily injury and property damage liability limits.

Collision

Collision coverage pays for damage to your vehicle if you collide with another vehicle or object, and it is considered to be your fault.

Comprehensive

Comprehensive coverage pays for damage to your vehicle if it is damaged by anything that is not a collision. This includes damage caused by fire, flood, wind, theft, vandalism, and if you collide with an animal such as a deer. This coverage is also used to pay for damage to broken glass or windshield.

Have a question about what damages would be covered? Call us and we'll assign you to a licensed insurance agent to explain the difference between collision and comprehensive coverages and give you the best options and price

Liability Limits

The limits for liability are the maximum dollar amount that an insurance company will pay out following an auto accident. Limits vary with each coverage within the policy, and you have multiple options.

Which limits are the best fit for you? Call us and we'll assign you to a licensed insurance agent to assess your needs and give you the best option and price.

Deductibles

A deductible is the amount of money that you would have to pay first before the insurance company will pay for the claim. For example, if you have collision coverage with a $500 deductible and you get into an accident that is your fault, you would have to first pay the $500 deductible and the insurance company will pay for the rest of the damages.

Deductible Options

Choosing a higher deductible may save you money on your total premium. However, the higher the deductible you choose, the more amount that you would have to pay out-of-pocket if you are in an accident that is considered to be your fault.

Which deductible option is the best fit for you? Call us and we'll assign you to a licensed insurance agent to assess your needs and give you the best option and price.

Unlimited Right to Sue (No Limitation on Lawsuit)

Under the no limitation on lawsuit option, you have the right to sue the person at fault for an auto accident for pain and suffering for any injury. Typically, this option costs significantly more than choosing the limitation on lawsuit option.

Limited Right to Sue (Limitation on Lawsuit)

Under the limitation on lawsuit option, you agree not to sue the person at fault for an auto accident for pain and suffering. However, choosing this option does not prevent you from being able to sue for economic damages such as medical bills or lost income. Also, you may sue for pain and suffering if you sustain one of the permanent injuries listed below:

  • loss of a limb or body part
  • loss of a fetus
  • a displaced fracture
  • significant disfigurement or scarring
  • a permanent injury (defined as a body part, organ, or both that is damaged and will not function normally
  • death

Not sure which option is best for you? Call us to speak with a licensed insurance representative to assess your needs and give you the best option and price.