Whether you drive a sports car or a station wagon, more than likely that the law requires you to buy automobile insurance. But there are various choices beyond your state's mandated minimum coverage. Getting extra insurance can save you money on repair bills or pay for a ruling against you as the result of a lawsuit.
Knowing the types of coverage and their advantages will help you figure out what type of package you should have for your own car policy. And it may also help you compare the offerings of different insurance carriers. The cost of your policy will be determined by the types and levels of insurance that you decide on, your age and driving record, and a multitude of other things.
The subsequent coverage types pertain to different kinds of losses.
Bodily Injury Liability - Pays for medical expenses, legal costs, and judgments against you when you or your vehicle are involved in a collision that results in the injury or death of another person.
Property Damage Liability - Covers damages to the property of others, brought about by you or your automobile.
Uninsured/Underinsured Motorist (UM/UIM) - Covers the expenses related to losses or injury to you caused by an uninsured, underinsured, or hit-and-run driver.
Medical Payments - Pays for the medical expenses of you and your passengers after a car accident, regardless of who's liable.
Collision - Covers the damage to your car resulting from a collision, despite who is at fault. Collision coverage requires the payment of a deductible by the insured.
Comprehensive Physical Damage - Pays for damage to your vehicle that isn't the result of a car collision, such as theft, vandalism, fire, hail, natural disasters, hitting an animal, etc. Comprehensive coverage also requires a deductible, and will only cover as much as the car was worth before suffering the damage.
Most states require you to have certain levels of liability insurance, and some require UM/UIM coverage. For example, the state of Kentucky requires minimum liability coverage of 25/50/10, which means $25,000 per person for bodily injury liability, $50,000 per accident, and $10,000 for property damage.
Some states have established no-fault rules, which require each driver's own vehicle insurance to pay for liability damages, regardless of who caused the accident. Personal Injury Protection (PIP) is additional medical payments coverage also required in certain states. This coverage usually includes work-loss coverage and a small death benefit. In other instances, both no-fault and PIP coverage may be optional.
Typically, lenders require adequate levels of collision and comprehensive coverage on a financed vehicle. If you drive an older, inexpensive car, then collision insurance may not be worth the expense.
After you learn what is mandatory by law in your state, you will have to choose whether or not you need more insurance to protect your assets. Higher liability limits will increase your premiums, but a bad collision could quickly exceed the minimum requirement for your state. Bear in mind that your personal assets and even your future earnings could be at stake in the event that a court judges against you.
Let us shop for you! Compare rates for Louisville Auto Insurance from multiple carriers and choose the best policy with the right coverages to meet your needs. Get fast, free Kentucky Car Insurance quotes by using our online quote forms.
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