Why Buy Auto Insurance?
In addition to satisfying a legal requirement, there is an equally important reason for purchasing auto insurance – the financial protection that it affords you and your family. However, if you only buy the state’s minimum liability requirement, you leave yourself vunerable to financial loss. Your car insurance will only pay out based on the policy limits, so if the accident costs more money than what you are insured for, you will have to pay for the difference out of your pocket.
Furthermore, if you don’t buy collision coverage you will not receive any compensation for damages to your own vehicle if you are at fault for the accident. On the other hand when you buy comprehensive car insurance you will have the added benefit of coverage for your car for most non collision related incidents as well.
With complete auto insurance you have the advantage of total financial protection. Without it, you are financially responsible for car repairs, car replacement, and/or medical expenses by yourself.
Below is a description of the coverages offered in a basic auto insurance policy. Your Radiant Insurance Agency representative can assist you in determining the right amount of coverage for your personal situation.
Bodily Injury Liability
This coverage applies to injuries that you, the designated driver or policyholder, cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission. Even a minor auto accident can cause serious injuries for which you could be liable .Definitely consider buying more than the state-required minimum to protect assets such as your home and savings. Your Radiant Insurance Agency representative can assist you in determining the right amount of coverage for your personal situation.
Medical Payments or Personal Injury Protection (PIP)
This coverage pays for the treatment of injuries to the driver and passengers of the policyholder’s car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs.
Property Damage Liability
This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else’s property. Usually, this means damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures your car may have hit.
This coverage pays for damage to your car resulting from a collision with another car or object. Collision coverage is normally required when your car is financed or leased. Several deductible options are available and prices vary with each option. Even if you are at fault for an accident, your collision coverage will reimburse you for the costs of repairing your car, less the deductible
This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer. A variety of deductible options are also available with Comprehensive insurance. A very common type of comprehensive claims is a cracked or shattered windshield. You may even qualify for glass coverage without a deductible.
Uninsured and Underinsured Motorist Coverage
This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver. Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian.