Auto Insurances
Driving Without auto insurances is against the law in almost every state. Not only is it illegal to drive without coverage, but it could significantly cost you if you get in an accident, especially if you’re at fault. Fortunately, several types of car insurances can pay for vehicle damage and injuries after an accident:
- Liability coverage: This type of car insurances pays for property damage and injuries you cause to others if you’re at fault for an accident Liability car insurance also pays for your legal defense and judgement or settlements if you’re sued because of a car accident. States (except New Hampshire and Virginia) require a minimum level of liability insurances to drive legally.
- Uninsured/underinsured motorist (UM) coverage: If an uninsured or underinsured driver strikes your vehicle, this coverage pays for you and your passengers’ medical expenses. Uninsured motorist coverage can also pay for lost wages and compensate for pain and suffering. Some states require UM coverage. And in some states UM coverage can also cover your car damage from the uninsured/underinsured driver.
- Personal injury protection (PIP): Regardless of who was responsible for an accident. PIP insurances can cover injuries to you and your passengers. This coverage may also reimburse you for lost wages, rehabilitation costs and services like childcare you can longer perform after being injured Many states require PIP, but it’s optional in others, and in some states it’s not available.
- Medical payment coverage: Med Pay coverage helps pay for medical expenses for you and your passengers if you’re injured in an accident, regardless of fault. Coverage amounts are typically low, usually between 1,000$ and 5,000$.
- Comprehensive and collision coverage: These coverage types work together to pay for damage to your vehicle.Collision insurances pays to repair or replace your car after an accident, n matter whose fault it was.Comprehensive insurances covers theft and damage to your car due to floods, hail, fire, vandalism, falling objects and animal strikes. Collision and comprehensive coverage are often sold together and are optional.
- However, if you finance your car, your lender will require you to buy it. The same goes for car leases.