Let’s dive into car insurance—it’s one of those things that everyone needs but not everyone fully understands. Here’s a straightforward breakdown of the key types of coverage:

1. Liability Coverage

• What it covers: This is the basic coverage that pays for damage you cause to others. You won’t ever get a penny out of this one. It only goes to the person if you caused the accident.
• Why it matters: It’s required by law, and having enough can protect your savings if you’re at fault in a serious accident.

2. Collision Coverage

• What it covers: Helps repair or replace your car if you collide with something. This will cover you regardless of whose fault it is. 
• Why it’s important: Whether it’s a fender-bender or something more serious, this coverage helps to protect you from taking a big hit when something happens to your car. It mostly only covers reasonable repairs or fair market value (minus your deductible) if your car is totaled, but that is better then nothing and can help significantly. 

3. Comprehensive Coverage

• What it covers: Covers things like theft, vandalism, or damage from falling objects or animals.
• Why it’s good to have: It’s there for unexpected incidents that aren’t collisions, like hailstorms or a curious deer.

4. Uninsured/Underinsured Motorist Coverage (UM/UIM)

• What it covers: kicks in if the other driver doesn’t have enough insurance to cover the damages or injuries or if the other driver has no insurance.
• Why it’s smart: Sadly, not everyone on the road is insured properly. This coverage ensures you’re not left paying for someone else’s mistake. It can come in handy. Most people don’t add it to their coverage but the cost is usually pretty minimal to have it. 

5. Medical Payments Coverage

• What it covers: Helps with medical bills if you or your passengers are injured in an accident.
• Why it’s helpful: Especially if you have high deductibles on your health insurance, this coverage can save you from hefty out-of-pocket costs. This is also known as Personal Injury Protection (PIP coverage) and it can help lessen the costs of getting treatment after your accident. Make sure to ask about it when reviewing coverage options. 

Practical Tips for Choosing Coverage

• Evaluate Your Needs: Think about your assets and what you stand to lose. Adjust your coverage limits accordingly.
• Consider Your Budget: Balance between what you need and what you can afford. Sometimes a little extra coverage can save you a lot of stress later on.

eConclusion

Understanding car insurance doesn’t have to be complicated. Knowing what each type of coverage does and why it’s important can help you make smarter decisions that protect you and your finances. If you are injured in a car wreak or any kind of vehicle injury reach out to attorney Matthew Dillahunty and he can help navigate these issues and more.