The most essential coverage for any driver is their state's minimum liability and property damage coverage. This coverage safeguards others from experiencing a financial loss if the insured causes property damage or bodily injury. Without this coverage, drivers risk losing their driver's license and getting fined for driving without it. The basic personal car insurance required by most U.
S. states provides some financial protection if you or another driver using your car causes an accident that damages someone else's car or property, injures someone else, or both. To make the best decisions about buying other types of car insurance coverage you might need, it is important to understand what is covered, what is not, and what is optional. In addition to understanding the types of coverage, you should also consider the coverage amounts since the state-mandated minimums may not cover the costs of a serious accident.
Your 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. Your policy also offers coverage if someone not listed in your policy drives your car with your consent. However, your personal car policy won't cover you if you use your car for business purposes, such as if you deliver pizzas or operate a delivery service. Today, auto insurance liability and property damage (PD) coverage is a legal requirement in most states. Even if these types of coverage are optional in your state, consider adding them to your policy for greater financial protection.
You can customize the coverage amounts to fit your exact needs and budget. Some auto insurers now offer supplemental insurance products (at an additional cost) that extend coverage for vehicle owners who provide ride-sharing services. Most people understand that they need Bodily Injury (BI) and Property Damage (PD) coverage, but they have no idea how to determine how much coverage they need.