Most insurance buyers always ask their insurance sales agents what their auto policies covers in case of accident. An auto coverage policy can include multiple aspects of the accidents. The term ‘coverage’ has a special meaning in the world of insurance and should be properly understood by the layman before buying an insurance plan. The auto insurance coverage should at least cover the family member’s loss and property loss.
The state of Florida in US urges all its residents to carry minimum personal injury protection coverage along with auto accident insurance coverage. This means that if any accident in Florida occurs, then PIP or Personal Injury Protection covers the health insurance of car insurance holder, family members and under some circumstances, they also cover the property loss. This policy ‘PIP’, regardless of other factors covers a large percentage of medical bills and lost wages due to injury and hospitalization.
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Now, let us look at those specific scenarios where fault of the accident does matter. The state of Florida was just an example of ‘no fault’ insurance policy. If the driver is at fault and has bought personal loss to you and your loved ones, then the driver’s bodily injury protection is triggered. This is a special type of insurance liability that covers present and future financial damages. It also covers intangible losses and sufferings like pain and mental agony. This essentially means that if a negligent driver causes damage to you or your loved ones, then BI or Bodily Injury would cover it. Most people are unaware of this scheme and don’t really claim. Only people, who are knowledgeable about these claims and hold a policy, can redeem a limit of USD 10,000. More basic info on basic insurance coverage can be found here:
http://www.progressive.com/customer-service/car-insurance-definitions/
Another important insurance coverage (link to internal) in this aspect is uninsured or under-insured motor coverage insurance that can be purchase by most drivers. This policy protects people from the harm that is caused because of other’s negligence on the road. This insurance steps in if the other party doesn’t possess insurance or their insurance is insufficient (aka under-insured) to meet the expenses. This policy caters to a household and covers all the relatives in the same household. Uninsured or under-insured motorist coverage (“UM,” for short) is important coverage for all Florida drivers to purchase. Whereas BI coverage provides protection if you negligently injure another, UM protects you and your family from harm caused by others. When a negligent driver carries no auto policy, or when the available BI insurance of a negligent driver is insufficient to cover all of your damages, UM insurance steps in. Typically, a UM policy covers you and any relative residing in your household. The scope of what UM coverage pays for mirrors BI coverage. This policy also covers the property loss but under some circumstances.
Most drivers and people don’t understand the specifics of these policies unless they meet an accident. Therefore, it’s always important to have an auto insurance coverage for the unforeseen future.
