Auto insurance is essential in case you get into a collision or accident whether it is your fault or the fault of another driver. But remember, it is to your benefit and advantage to understand the motor vehicle insurance that you secure.
When exploring insurance options, do thorough independent research. This provides you with protection in knowing that you have armed yourself with crucial knowledge. Doing so likely will impress your insurance agent – the person to whom you must ask plenty of questions.
Common types of insurance
Not all auto insurance coverage is the same. Some policies exclusively focus on protecting your vehicle, yourself and your passengers. Other types of policies will protect you if you are the one who causes the injuries or damages.
Here is a summary of some of the common types of insurance available and how they may help:
- Collision insurance: Covers damage that occurs to your vehicle while you drive. Scenarios may include when you are struck by another driver. Remember, though, that collision does not cover other property damage caused by you.
- Comprehensive insurance: Covers damages related to natural disasters such as hail, fire and flooding as well as vandalism, collisions with animals such as deer and if someone steals your vehicle.
- Liability insurance: This comes into play if an accident is your fault. Liability insurance covers expenses when someone else requires medical attention or had property damage.
- Uninsured motorist and underinsured motorist coverage: Within this group, there are three types of coverage. Uninsured motorist bodily injury (UMBI) covers your injuries after being struck by an uninsured driver. Uninsured motorist property damage (UMPD) covers repairs to your vehicle if damaged by an uninsured driver. With underinsured motorist coverage (UIM), you gain additional coverage if the other driver does not have enough coverage.
- Personal injury protection (PIP): As a no-fault insurance state, Kentucky requires this insurance. It covers injuries and expenses no matter which driver is at fault. PIP coverage also extends to the other drivers on your insurance policy. Basic PIP provides as much as $10,000 per person in each accident for lost wages, injury-related costs and medical expenses. Purchasing additional PIP coverage is an option.
Have regular conversations with your insurance agent. Do not be afraid to ask questions in how a policy benefits you.
Understand your options
Make sure you know the insurance options available to you and how they work. And make sure that you retain an experienced and knowledgeable insurance agent who serves as a trusted guide and partner.