Understanding Car Insurance Coverage

Coverages

An auto insurance policy is made up of different types of insurance coverages. While there are many types of coverages available, you are only required to have four:

1. Bodily Injury to Others;
2. Personal Injury Protection (PIP);
3. Bodily Injury Caused by an Uninsured Auto; and
4. Damage to Someone Else's Property.

Optional insurance coverages such as Comprehensive and Collision are commonly purchased by consumers.
Each type of insurance coverage has a limit, meaning that the insurance company will not pay more than this amount for a claim. You are required to purchase certain minimum limits for each of the required coverages. Given the high costs associated with serious accidents, most drivers buy coverage limits beyond the minimum requirements.