Understand Mandatory Insurance Requirements
Liability insurance pays others for damage or injury, when you are responsible for an accident. It does not cover injuries to the driver of your car or passengers in your car. Bodily Injury & Property Damage (BI/PD) coverages have separate limits. See the state chart for minimums.
Personal Injury Protection pays medical expenses when you or others covered under your policy are injured in an auto accident. Also called “No Fault” coverage, PIP pays your medical expenses whether or not you were at fault. The state chart shows where PIP coverage is required.
Uninsured and Underinsured Motorist coverage protects you in an accident caused by someone who doesn’t have proper insurance coverage. In most states, UM/UIM will not cover a hit-and run accident.
Medical Payments coverage protects the driver and passengers without regard to fault. Limits are generally less than $10,000 and are often coordinated with healthcare coverage.
When the Minimum Is Not Enough
Understand why to buy more. The amount of coverage you buy should match your financial risk, if you’re responsible for an accident that’s not covered by insurance. A serious accident can result in medical expenses that exceed your policy limits, making you personally responsible for the excess amounts.
Always buy UM/UIM coverage. With almost 17% of drivers uninsured nationally, why take a chance that one of them will hit you? We suggest you buy matching limits for Bodily Injury and Uninsured & Underinsured Motorist coverage, to protect yourself and your passengers.
Keep Your Insurance Current
No insurance? No registration. Higher rates. In most states, proof of insurance is required for your vehicle registration or driver’s license renewal and, of course, when you have an accident. The penalties include suspension, fines and often the requirement that you file proof of insurance for 3 years, in the form of an SR-22 filing. That puts you in the high risk category for insurance – and higher rates.