Auto Insurance Basics

When you purchase auto insurance, you might get tempted to only purchase the state minimums, especially if you do not know what each of the means. This blog from 
Insurance Pro Group Inc. of Suwanee, GA explains the types of auto insurance and what each covers, so you know what PIP, collision, comprehensive, uninsured/underinsured driver coverages provide.

Typically, you have the option to purchase seven types of auto insurance coverage. You can add any combination of these six to a single policy to protect your vehicle. 

Liability
Your liability coverage pays for damages to other parties when you are at fault. All states require this, so if you drive beyond Georgia’s borders, you still need this coverage. This coverage applies whether you drive your own vehicle or one owned by someone else as long as you have their permission.

Property Damage Liability
When you are at fault in an accident, property damage liability pays for the damage you caused to someone else’s property. States also require this. It may carry a deductible.

Bodily Injury Liability
Bodily injury liability covers the medical costs related to injuries suffered by other parties in an accident in which you’ve found at fault. It reimburses or pays for the other individual’s medical bills, physical therapy, occupational rehabilitation, lost wages, attorney and court costs, funeral expenses, and pain and suffering.

Comprehensive
When you hit something such as a deer or a cow, comprehensive covers the damages. It also covers weather damage like that caused by earthquake, fire, flood, hail, hurricanes, and tornadoes. If your vehicle gets stolen or vandalized.

Collision
Collision coverage pays for repairs when your vehicle collides with another stationary object. That might be a parked vehicle, building, fence or guardrail, etc. Some policies include potholes. This pays to replace your car at its current value if it gets totaled.

Personal Injury Protection (PIP)
Think of Personal Injury Protection as no-fault coverage. It covers what bodily injury liability coverage does not and it provides coverage for you, your designated driver and your passengers.

Uninsured/Underinsured Driver Coverage
Uninsured driver coverage pays for your damages and medical costs if your vehicle gets hit by another driver who does not have insurance or has too little insurance to completely cover your loss. It pays for medical expenses, property damage and lost wages. It sometimes covers car rental while you wait for your insurance payment.

Come by and see us at Insurance Pro Group Inc. of Suwanee, GA to discuss your auto insurance needs. We can help you determine what coverages best suit your needs.