Types of Auto Insurance

Because of the cost of medical care and vehicle repair, it has become vital to have auto insurance today. In fact, most states require drivers to have some type of liability insurance. If they do not do so, there can be stiff penalties for the car owner or driver.

Liability Insurance

Two types of liability insurance cover a driver if their car causes injuries or damage to another person:

• Bodily injury liability insurance type – which covers the injuries and medical bills for others
• Property damage liability insurance coverage – which covers property that is damaged as a result of the accident

When an accident occurs, the victim will draw upon the bodily injury liability insurance type and the property damage liability insurance coverage of the person who caused the accident.

Personal Injury or Damages

It is wise these days to also carry additional insurance to help when a driver is not at fault, but the other driver does not have enough or any insurance. That includes:

• Uninsured motorist coverage benefit
• Underinsured motorist coverage cost

When the other driver does not have any insurance, the victim's uninsured motorist coverage benefit will pay their medical bills and damages. When the at-fault driver does not have enough insurance, the victim's underinsured motorist coverage cost supplements the coverage the at-fault driver's insurance provides.

Legal Assistance

It is important to remember that just because the law requires drivers to have insurance doesn't mean they do. If you are in an accident caused by an uninsured driver, uninsured motorist coverage can provide the care and security you need. In addition, you may be able to obtain more compensation by consulting an attorney to learn what your rights are and how to hold the at-fault driver liable for damages to you and your car.