Number of states mandating automobile insurance
Unlike health insurance, car insurance policies are actually made up of several different types of coverage each with its own premium and benefits.
Motorists can often select different coverage amounts for the different components so its important for consumers to understand what is being covered to construct the best policy package.
Most states typically require BI limits of ,000; this can range significantly, from the lowest of ,000 per person in Florida to the highest requirement of ,000 per person in Alaska.
What works for you should be based on an assessment of what assets you have at risk and your budget.
People usually get bodily injury liability and personal injury protection (PIP) mixed up.
PIP coverage entails your insurance company paying for any injuries that happen to you or your passengers in an accident. Property damage (PD) insurance covers any sort of damage that you may cause to someone else's property.
Any damages that exceed these limits will have to be paid out of your own pocket, so its important to have sufficient coverage.
Your car insurance company steps in to pay for the other party's medical expenses, lost wages, or funerals.In order to drive in most states, motorists must have some form of liability coverage or demonstrate another form of financial responsibility.This is to ensure that drivers that end up hurting others or damaging property can property compensate the other party.BI even covers any legal fees you incur if the other party decides to sue you in court.Protection is provided by your insurer up to the BI liability limits in your policy; any bills beyond that will be your liability.