Insurance is a necessity in practically every state based on legislation that set the scope of that protection. Chief among insurance requirements is liability insurance, but some states also require drivers to maintain Medpay or personal injury protection coverage as a standard part of their auto policy. Personal injury protection is also typically called PIP coverage and applies in all no-fault insurance states. This makes a significant difference when accidents occur because the first insurer the injured driver turns to is their own.
Although some states in the US use a no-fault based system of determining who pays and how much is covered, most states utilize fault-based auto accident programs. Fault-based auto accident programs mean that injured plaintiffs will typically not be dealing with their own insurance company unless the same carrier covers the opposing litigant. Cases can get complicated quickly, which is why finding fault in a car accident can be tricky. Even in situations where fault is clearly assigned it is essential to understand what is happening in the litigations or you may lose significant amounts of money.
Basic Liability
Standard liability automobile insurance is a requirement in practically every state. The only difference tends to be the minimum amount required for a vehicle to be legal regarding insurance protection. Minimums tend to be very low, which means that it may be a good idea to evaluate the need for increased liability protection because medical bills can quickly surpass the amount of coverage. A negligent driver could be left owing the remainder of an accident injury claim.
Personal Injury Protection
Personal injury protection is a standard required insurance in no-fault auto insurance states. It is carried on the vehicle owner's policy and is also the first coverage available following an accident in a no-fault state. Minimums for PIP coverage are also typically very low, and this is protection that is very helpful for getting medical bills covered quickly following an accident. However, it should also be a consideration for increased coverage beyond the minimum.
Full Property Damage Protection
Full coverage is collision protection for the total value of a policy owner's vehicle. It is always important to have a valuable vehicle covered to the fullest extent because an accident could result in significant financial loss without complete protection. Full collision insurance is required by finance companies for cars that have financing on any long-term basis, and it is an excellent method of protecting an investment in a vehicle for those who can fit it into their personal budget.
Commercial Vehicle Insurance
Individuals who use their vehicle as transportation for their work could very well need commercial vehicle insurance protection. Vehicles used as service transportation should be designated as such and insured appropriately based on the actual usage. Technicalities can matter in an accident case, and insurance companies are quick to use anything available to reduce or avoid an accident claim. The best step in protecting against this problem is to have appropriate insurance based on how the vehicle will be used.