Insurance Basics
Types of Mandatory coverage:
Bodily injury liability. If you injure someone in a car accident, this coverage pays that person's medical and rehabilitation expenses, and any damages for which he or she may sue you. In most states, you must buy coverage of at least $15,000/$30,000 (the $15,000 pays for injuries to one person; the $30,000 is the total available per accident).
Property damage liability. If you're at fault in an accident and you damage someone's property, this coverage pays to fix it. In most states, you must buy $5,000 worth of coverage. Many standard policies include a higher limit-often $25,000. (Of course, if you total a new Mercedes, you'll need more).
Medical benefits. This coverage pays medical bills for you and others covered on your policy, no matter who was at fault in the accident. In most states, you must buy at least $5,000 worth of coverage. The typical driver buys $10,000.
In addition to the mandatory coverage , you may want:
Uninsured/underinsured motorist. If you're injured in an accident and the person who hits you doesn't have enough insurance -- or any insurance -- you'll be glad you have this coverage. It will pay for your losses and damages, including your medical bills, lost wages, and pain and suffering.
Collision. It's all well and good to pay to fix someone else's car, but this coverage will pay to fix yours.
Comprehensive. This coverage pays for theft, as well as damage to your car from "hazards," including fire, flood, vandalism or striking an animal.
Remember - If we finance a vehicle for you, you will be required to have Liability, Collision, and Comprehensive insurance coverage for the vehicle until the vehicle is paid in full.
