In many states, drivers are required by state law to have a minimum amount
of liability coverage. State laws vary as to the amount of insurance a driver
is required to carry. This is insurance to pay for damages to others if you
cause an accident. You can pay for greater coverage if you wish. This may protect
you from loss if you are found liable in a vehicular accident. Remember, liability
insurance pays only to settle claims or pay judgments against you if you are
To protect yourself against claims from other drivers or passengers in case
of a vehicular accident, you can purchase a coverage known as “uninsured
or underinsured motorist benefits”. This allows you to receive compensation
from your own insurance company if a negligent driver has limited liability
insurance. If the amount of your damages exceeds the negligent party’s
coverage, you can make a claim under this coverage from your own company.
To cover medical bills, you will need to purchase an additional coverage called
“medical payments”. Medical payments coverage may go by various
names, but its intent is to pay for the medical needs of a driver or passengers.
It only covers those who are in the insured car.
Collision coverage is another type of voluntary coverage you may wish to purchase.
This covers repairs or replacement to your vehicle after an accident, regardless
of who is at fault. There is usually a deductible on the amount paid. This allows
you to have repairs on your vehicle if you are at fault, or if your car is damaged
by someone who has no insurance or who flees the scene.