What are my auto insurance limits and policies?
Updated: Oct 2, 2020
When it comes to personal car insurance, several limits and policies could be tailored for you and your vehicle. Still, for your car insurance, the national insurance gives room for various types of insurance policies that are adoptable.
But, the insurance policies have limits applicable to your vehicle. But, there a total of six available policies, and in this post, I would be detailing some of them.
Types of personal auto insurance policies
1. Bodily Injury liability
BIL is an insurance policy that applies to the injuries that may have been caused by the policyholder to someone else. In simpler terms, this insurance protects you from the damages as the driver or, in some instances, family members may inflict on others while using the vehicle. When taking this policy, you must have enough liability to be adequately protected, even when you get sued for a large sum of money. It is recommended that when taking such policies, policyholders should buy more than the state-issued minimum liability insurance. As this should be enough to protect your assets, home, and savings should anything happen.
2. Personal Injury Protection (PIP) policy
This is an auto insurance policy that protects the policyholder by paying for the driver's treatment and the passengers in the policyholder's car. This insurance policy could cover medical payments and compensate the policyholder for damages. Such damages include lost wages and several other wages that the policyholder would have been entitled to if the accident hadn't happened. In some cases, PIP also covers funeral costs.
3. Property damage liability
This personal auto insurance policy covers the cost of repair or replacement your vehicle causes to someone else's property. Regardless of who is driving the auto insured vehicle, the insurer is obligated to pay the repair cost; however, this depends on the liability you paid. This usually applies to damages to someone's car. However, it still covers damages to someone's fence, lamp, mailbox, etc. this insurance policy pays for any property damage.
Collision is an insurance policy that pays for damages to your automobile when you're involved in a collision with another car or an object like a tree, for example. However, you should note that a collision with deer I covered under comprehensive. Collision insurance will protect the cost of your car tipping over or damaged due to potholes. Collision insurance policies are usually sold together with deductibles. Regardless of whether you are at fault, collision insurance is responsible for making your insurance company repair your vehicle.
5. Uninsured and underinsured personal auto insurance
This auto insurance type can protect you if your vehicle is damaged by a not insured driver or whose deductible is not enough to pay for the repair. This auto insurance policy also covers you if you are a victim of a hit and run.
Once you have gotten the right policy for your vehicle, then you could go on and make your purchase. I'd suggest that you go for one that gives you the best offer and by a trusted insurance broker. Note, you can always purchase more than one policy at a time.