Does anyone know the difference between bodily injury liability and personal injury protection? Here’s a look at the terms you’ll likely encounter in an auto insurance policy.
Here are six basic components of most auto insurance policies and how they protect you:
Bodily Injury Liability. This coverage applies to injuries the policyholder (or someone driving the policyholder’s vehicle) causes to someone else. This coverage is extremely important if you find yourself involved in an accident that involves hospitalizations or significant injuries. An injury-related lawsuit would be financially crippling without it.
Personal Injury Protection. This coverage will provide medical care for the driver and any passengers, who are in the policyholder’s car at the time of an accident.
Property Damage Liability. This coverage pays for any damage that you, or someone driving your car with permission, causes to someone else’s vehicle or property. Property Damage Liability only deals with property, not injury.
Collision. This coverage pays for damage to your car. In the event of an accident, collision coverage will pay for the cost of repairing your vehicle, minus the amount of your deductible. Typically, deductibles fall in the $250 to $1,000 range.
Comprehensive. This part of your policy is designed to protect you if your vehicle is stolen or damaged by something other than a collision. This might include a fire, flood, windstorm, earthquake or other natural disaster. It might also include vandalism or falling objects. As with collision, this coverage is subject to a deductible.
Uninsured and Underinsured Motorist Coverage. This coverage comes into play if you are hit by an uninsured or hit-and-run driver.
Want to learn more? Go here to find out more about the protections your auto insurance policy provides.