What Car Insurance Means to You
insurance Mendota IL We see more cars on the road every year. This could lead to an increased likelihood of a car accident. The difference between a small bother and major obstacle can be your insurance. But why do you need insurance and just how much do you need? Mandated coverage varies based on the state/province but typically includes the following: Liability: Liability pays for damages due to bodily injury and damage to property when you are responsible. Bodily injury damages can include medical fees, and lost wages. Property damage can refer to damaged property or loss of property use. If you are in legal trouble, liability insurance can pay for your legal fees. Local laws typically require minimum amounts, but higher amounts can be purchased and are usually recommended. 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. It may also cover lost earnings, service replacement and funeral expenses. Local law typically sets minimum amounts. Medical Payments: Medical payment coverage can be purchased in non-no-fault states and will pay regardless of who is responsible for an accident. If this policy has been purchased, the insured person will receive coverage for necessary medical or funeral expenses. Collision: Pays for damage to your car caused by a collision. Comprehensive: Applies if your car is stolen or damaged by something other than a wreck, including weather damage or vandalism. Uninsured Motorist: Pays for repair and replacement costs when someone with insurance is in an accident caused by another person who does not have liability coverage. Under-Insured Motorist: Similar to uninsured coverage, this type of insurance covers you from drivers without enough insurance protection. Other policies, including emergency road service, are also available.