Every state, with the exception of New Hampshire, requires all drivers to carry auto liability insurance. Coverage is flexible. It may be purchased as a separate policy or as part of a package of coverage that can also protect buildings and business property (equipment, furniture, etc.).
What is covered under an automobile insurance policy?
Bodily Injury Liability and Property Damage Liability
Liability Insurance covers the costs of damage that you may do to others, including property damage and bodily harm.
Property Damage Liability coverage compensates to replace or repair property that you destroy (other vehicles, fences, buildings, etc.).
Bodily Injury coverage compensates for medical bills and lost wages.
Collision Coverage - pays to repair your own vehicle after an accident.
Comprehensive Coverage - pays for damages to your car that were not caused by an accident, such as fire, theft, vandalism, natural disasters, hitting an animal, etc.
Medical Payments - compensates for medical expenses for the driver and his/her passengers as a result of an accident, regardless of who was at fault.
Personal Injury Protection and No-Fault Coverage
Pays for medical expenses and lost wages for the driver and his/her passengers who are injured in an accident.
No-fault coverage pays for losses, regardless of who was at-fault in the accident.
Uninsured Motorist (UM) coverage pays for medical bills if you are hit by a driver who does not have automobile insurance or if you are involved in a hit and run accident.
Underinsured Motorist (UIM) coverage takes effect when you are hit by a driver who does not have enough automobile insurance to cover all of your medical bills.
