1. LIABILITY COVERAGE
Bodily Injury - BI
Minimum required: 25,000 per person/65,000 per accident
What it covers: This covers and accident where you are found to be at Fault. It pays for the medical costs, Rehabilitation, or funeral costs incurred by another Driver, the other driver’s passengers, passengers in your Car, and pedestrians. It also pays legal costs and settlement for non-monetary losses (pain & suffering).
Recommended: You should have at least 50,000 per person/100,000 per accident. If you have significant Assets, then you ought to have higher limits to protect your assets from lawsuits that might result from an Accident.
Property Damage – PD
Minimum required – 15,000 per accident
What it covers: Repair or replacement of other people’s Vehicles or property that someone insured on your policy might damage in an accident.
Recommended: Many new cards cost more than 25,000. We recommend that you have at least 25,000 or property damage.
Personal Injury Protection – PIP
Minimum required: 3,000 per person
What it covers: This is no-fault insurance that covers you and people riding in your vehicle. It pays for medical expenses related to an accident. It can also include a small funeral benefit and a short period of Disability income.
Recommended: If you have a good health insurance policy, then the state minimum should be adequate.
Uninsured Motorists – UM
Minimum recommended: 25,000 per person/65,000 per Accident.
What it covers: This pay for bodily injury to your or anyone in your vehicle as a result of an uninsured Motorist. It would cover medical expenses, rehabilitation Funeral costs, and losses from pain & suffering.
Recommended: You should have the same limits as for Bodily injury coverage.
Underinsured Motorists – UIM
Minimum recommended: 10,000 per person/20,000 per accident
What it covers: This is a supplement to the bodily injury coverage that another driver causing an accident has. Several other states have lower minimums insurance requirements, so this will supplement their coverage.
Recommended: you should have the same limits as your bodily injury coverage.
Uninsured Motorist Property Damage – UMPD
Minimum recommended: 3500
What it covers: This will pay to repair your vehicle if it is damaged by an uninsured motorist. It will pay up to 3500 with a $250.00 deductible to fix your vehicle or the cash value of the vehicle, if less.
2. PHYSICAL DAMAGE
What it covers: This covers damage to your vehicle due to non-collision damage. Examples of comprehensive damage includes: Windshield cracks, chips, vandalism, theft of your vehicle, hitting an animal, fire, flood damage, etc.
Deductibles: The deductible is the portion of the claim that you pay, the insurance company pays the balance. A higher deductible keeps your premium cost down, however, if the deductible is to high you may have to pay for any windshield damage yourself.
What it covers: This covers damage to your vehicle due to a collision with another vehicle. Usually, if the other driver is at fault, then his property damage coverage pay for the repairs on your vehicle. However, if you or an insured driver is responsible for the collision, then this coverage will cover your vehicle.
Deductibles: A higher deductible will keep your premium down. A 250 or 500 deductible is recommended.