What to Know About Car Insurance

Choosing car insurance coverage can be a little confusing. The first thing you need to know is that there are different types of policies that make up your overall auto insurance. These include:

Liability Coverage: Covers liability and expenses when you are the one at fault in an accident.
Bodily Injury Liability (BIL): Covers the medical expenses of people that were injured in an accident in which you were at fault.
Property Damage Liability: Covers damage to the other vehicle in an accident in which you were at fault.
Personal Injury Protection (PIP): Covers your medical expenses as well as those of your passengers after an accident.
Uninsured/Underinsured Motorist Coverage: Covers costs if you are involved in an accident with another motorist who has minimal or no insurance.
Collision: Covers your vehicle’s repairs after an accident.
Comprehensive: Covers expenses if your vehicle is damaged or stolen even if not during an accident.

Almost every state has minimum requirements for car insurance. Check with your insurance company to understand what numbers allow you to legally drive. Since every situation is different, the minimum may not necessarily be enough if you get involved in a car accident. If you have assets like a home, savings, etc., you’ll want to consider getting covered for an amount equal to these.


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