While the law states that all drivers on the road are required to carry a minimal amount of liability coverage, but not all drivers comply with these laws. An even greater number of people choose to carry only as much auto insurance as the law requires them to have. Consequently, you simply cannot count on other drivers when it comes to making sure you are protected against a financial loss in the event of an accident. Thankfully, you can choose to protect yourself without going broke in the process by simply choosing to take advantage of the following two add-on coverage options when purchasing your own auto insurance policy.
Personal Injury Protection (PIP)
Personal injury protection coverage, or PIP coverage as it is commonly called, is an add-on coverage option that provides you with coverage for any costs you experience as the result of being injured in an accident. This coverage is a type of no-fault insurance. This means that it doesn't matter who caused the accident that led to your injuries, your medical costs will still be covered up to the amount of the policy limits that you choose to purchase.
The primary difference between personal injury protection coverage and the bodily injury coverage that is included when purchasing liability coverage is that you cannot seek compensation for pain and suffering or other non-economic damages when filing a claim against your PIP coverage. Consequently, if you do end up being injured by a driver who has adequate insurance coverage, you will still need to file a claim against their insurance in order to collect these types of damages.
If a driver chooses to break the law and drive without insurance, you could find yourself struggling to try and recover any compensation for the damage done to your vehicle as the result of an accident. This is especially true in cases where the person that hit you does not have any real assets for the court to garnish if you did choose to take them to small claims court.
Even in cases where the other driver does have liability insurance, you may find that the policy limits offered by their auto insurance policy simply are not enough to cover the financial loss that you suffered as a result of your accident. In both of these cases, having uninsured/underinsured motorist coverage will allow you to collect the compensation you are entitled to by choosing to file a claim against your own insurance policy.
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27 April 2021
Ten years ago, I married my best friend in a beautiful, intimate ceremony. My husband and I have been nearly inseparable and we’ve enjoyed this special time in our lives where it has been just the two of us. However, we’re finally ready to have a baby. Because I only work part-time, my husband is the primary financial provider in the family. If something ever happened to him, I wouldn’t be able to instantly support myself and a child. Because my husband worries about an uncertain future, he is considering purchasing a larger life insurance policy. On this blog, I hope you will discover the best types of life insurance policies for young parents to invest in. Enjoy!