Bodily injury liability insurance pays for injuries caused to another driver if you are at fault for the accident. It includes medical bills, as well as lost wages and even funeral costs, if applicable. Bodily Injury Liability Coverage applies to injuries that you, the designated driver or the policyholder, cause to another person. You and your family members listed on the policy are also covered when you drive someone else's car with your permit.
Collision coverage pays for damage to your car as a result of a collision with another car, an object, such as a tree or telephone pole, or as a result of a rollover (note that collisions with deer are covered by the comprehensive plan). It also covers damage caused by potholes. Collision coverage is generally sold with a separate deductible. Even if you are at fault for the accident, your collision coverage will reimburse you for your car repair costs, minus the deductible.
If you're not at fault, your insurance company may try to recover the amount they paid you from the other driver's insurance company and, if successful, your deductible will also be refunded. This coverage reimburses you for losses due to theft or damage caused by something other than a collision with another car or object. Covers events such as fires, falling objects, missiles, explosions, earthquakes, windstorms, hail, floods, vandalism, riots, or contact with animals such as birds or deer. You will also pay for the repair of your windshield if it is cracked or broken.
Comprehensive insurance is usually sold with a separate deductible, although some insurers may offer the final part of the coverage without a deductible. Most states have statutory minimums on how much liability coverage you should have. It's often a good idea to carry more than is required, to lower the chance of having high out-of-pocket costs in the future. Collision coverage helps cover the costs of repairing your vehicle regardless of fault.
The collision doesn't cover if you hit an animal or if your car breaks down because it's too old and unreliable. Comprehensive coverage is usually sold together with collision coverage. Think of them like peanut butter and chocolate. If the injured person is unable to work because of the injuries sustained in the accident, your coverage could help cover the loss of wages.
If you cause a car accident in which another person is injured, your personal injury liability insurance (BI or BIL) pays for the expenses related to the injuries you suffer in the accident. Keep in mind that each type of coverage is priced separately, so there is variability in policy limits and prices. And while car insurance is one of the most common types of insurance out there, there are a lot of unpleasant and confusing terms that go along with it. CSL's flexibility makes this type of limit more expensive, and not all car insurance companies offer this option.
Car insurance is an important way to protect yourself financially, because it can prevent you from paying out-of-pocket for expenses that result from injuries and property damage you cause. To be clear, full coverage is not a specific type of insurance, but rather a general term that refers to any policy that includes comprehensive and collision insurance, in addition to state minimum coverage requirements. This can be a difficult cost to quantify, but the other party can claim reimbursement for persistent pain or emotional distress as a result of the injuries. Bodily injury liability coverage is mandatory in most states and is only one type of liability insurance.
With a split-limit policy, your insurer determines in advance how much you'll pay for each type of coverage. Required in states with no-fault laws, where drivers must file minor injury claims with their own PIP insurance rather than with at-fault driver's bodily injury liability coverage. This coverage covers the treatment of injuries to the driver and passengers of the insured's car. While personal injury liability will not cover your own injuries or associated costs, you can cover your legal fees if you are sued for an at-fault accident.
Personal injury liability insurance only covers costs related to injuries sustained by other drivers, passengers and bystanders involved in an accident caused by the policyholder. While different states have different mandates for car insurance, most basic car policies consist of six types. . .