Auto Insurance Coverage

Auto Insurance Coverage
 Auto insurance is required virtually everywhere in the United States. 48 states require at least a minimum amount of car insurance. Wisconsin and New Hampshire are the two exceptions. However, all jurisdictions require financial responsibility when you operate a vehicle on roadways. This means if you get into an accident you will be financially responsible, whether you have insurance or not.
Minimum requirements vary greatly from state to state. Laws change frequently and it is up to you, the driver, to know and understand the laws in the state you are driving. For a breakdown of the minimum requirements on a state-by-state basis,
Auto insurance incorporates the following basic components. These components are not required in every state (some components are optional):

LIABILITY
Liability is for accidental bodily injury and property damage done to yourself, passengers, and third parties. Injury damages include medical expenses, loss of income, and pain and suffering incurred as a result of your negligence. Property damages include damage done to other vehicles or personal property. Liability coverage also includes defense and court costs. Most states have a minimum amount of liability coverage that you must carry in order to operate a vehicle on a roadway. You are always free (and often advised) to carry coverage above the state minimums.

COLLISION
Collision coverage pays for damage done to your vehicle that is the result of an accident. Without collision coverage you will not receive any reimbursement from your insurance company for any damage done to your vehicle, no matter who is at fault. Depending upon the laws of your jurisdiction, you may be able to sue another party for damages, but you will not be able to collect for damages from your insurance company unless you carry collision coverage.

COMPREHENSIVE
Comprehensive coverage pays for loss (usually fire or theft) or damage done to an insured vehicle that is not the result of an accident. An example of non-accident damage is damage done to your vehicle by hail. Basically, whenever your vehicle is parked and not being operated, it is covered under comprehensive coverage.

MEDICAL COVERAGE
Medical coverage pays for medical expenses incurred on behalf of the driver and all passengers as a result of an accident, regardless of fault. This coverage is now mandatory in many states. However, you can usually get an exemption if you provide proof of traditional medical coverage.

PERSONAL INJURY PROTECTION
Personal injury protection is similar to medical coverage, except that it covers only the insured driver.
UNINSURED MOTORIST
Uninsured motorist coverage pays for damages done to your vehicle by another driver, that is the result of an accident, when the other driver does not have liability insurance.

UNDERINSURED MOTORIST
Underinsured motorist coverage pays for excess damages done to your vehicle by another driver, that is the result of an accident, when the other driver has insufficient liability coverage.

RENTAL REIMBURSEMENT
Rental reimbursement coverage will pay you for the costs incurred for the use of a rental car while your vehicle is being repaired, due to a covered accident.