Bodily Injury Liability (BI) is the most important coverage in a personal auto policy. It is the most common type of auto insurance because it is required in nearly every state. BI covers you in case you cause an accident that injures or kills other people. Your car insurance company steps in to pay for the other party's medical expenses, lost wages, or funerals.
BI even covers the legal fees you incur if the other party decides to sue you in court. In addition to BI, there are other types of coverage that are worth considering when purchasing a personal auto policy. These include Medical or Personal Payments, Property Damage Liability, and Uninsured Motorist Protection. These types of coverage are optional in some states, but it is beneficial to buy higher levels of coverage as the state-mandated minimums may not cover the costs of a serious accident.
Your personal auto policy will cover you and the other members of your family included in your policy, whether you drive your insured car or someone else's car with permission. However, it will not cover you if you use your car for business purposes, such as if you deliver pizzas or operate a home delivery service. It also does not offer coverage if you use your car to transport other people through a ride-sharing service, such as Uber or Lyft. No-Fault insurance is another important coverage to consider when buying a personal auto policy. The purpose of no-fault insurance is to restore the health and productivity of people injured in car accidents as soon as possible.
It covers medical expenses and lost wages due to an accident, regardless of who was at fault. When buying insurance, check with your insurance company, agent, or broker if your policy provides bodily injury liability coverage to your spouse. This coverage covers damage that you (or someone driving the car with your permission) may cause to someone else's property. If you don't have your own policy and you're not covered by a family member's policy in your household, and if you're injured as a pedestrian by an uninsured vehicle or by a driver who hits the road or by being an occupant of an uninsured vehicle in New York State, you may still be eligible for uninsured motorist protection and no-fault coverage. To drive legally in most states, motorists must have some type of liability coverage or demonstrate other types of financial responsibility. It is essential to understand what types of coverage are available and what coverage amounts are best for your needs and budget.
Having adequate car insurance is essential for protecting yourself financially in case of an accident.
