Types of Auto Insurance Coverage
Written by Jay Steele
An automobile is the first most expensive purchase for most of the people. It is second only to a house as the most valuable purchase consumers commonly make. It is easy to see why a person would will to protect this investment since an automobile prices averaging 30.000 US dollars. What is insurance coverage for vehicles and what are its types that insurance companies around USA provide.
Liability Coverage Definition
The first type is Liability coverage. It covers injuries or damage you or the person who drives your car cause other people or their property. There're two types of liability coverage - bodily injury and property damage liability.
Each State has it's own laws dictating the minimum coverage you must carry for this. Some States require from you to prove you already have insurance before registering an automobile. Other states use the honor system, when you only have to provide a proof if you had an accident or violation in the past. There're only 4 States that don't requite any liability: New Hampshire, Virginia, South Carolina and Wisconsin. A typical minimum coverage required by State has a proportion of 25/50/10.
Medical Payment Coverage 
The next type is a Medical payments coverage. This provision secures you and your passengers if you're hurt in a vehicle accident regardless of who's at fault. It also extends not only to you but your family members too if you're a pedestrian injured by an automobile or a passenger in someone else's vehicle.
Medical payments coverage pays all the medical bills resulting from a car accident up to a per person maximum 5.000 dollars commonly. There're no deductibles and no waiting period under this type and it also covers the prescription drugs related to the injuries.
Some states have a coverage known as Personal injury protection abbreviated as PIP. It may have a deductible and it may allow you to claim for two things normal medical payment coverage does not cover: rehabilitation expenses and lost wages.
Uninsured and Underinsured Motorist Coverage
The third type is Uninsured and Underinsured motorist coverage. This coverage is quoted similarly to bodily injury liability. Even though compulsary insurance laws exist in 48 states, approximately 15% of all vehicle accidents are caused by uninsured drivers. Uninsured motorist coverage provides protection to you as well as your passengers when you're injured in an accident with an uninsured motorist. It covers:
- medical bills
- lost wages
- rehabilitation expenses
In other words, everything you could have claimed against the at fault party if they had it. Underinsured motorist coverage will cover those same losses if the at fault party's coverage is insufficient for your loss. Remember that in some States this type applies only to injury but not for the damages to your vehicle.