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Specific Types of Coverage

What does "liability" mean?
This is a common insurance word and it means "responsibility." You have liability for damage and bodily injury when an accident is your fault. If the other person caused the accident, they are liable for these costs (unless you are in a "no-fault" state).

What is the difference between "collision" and "comprehensive" insurance?
If you cause an accident, collision insurance pays for the damage to your car. Comprehensive insurance pays for damages to your car that don't happen in an accident but from things like vandalism, break-ins, or weather-related events like hailstorms.

What is "uninsured motorist coverage," and do I need it?
Some people drive without insurance, even though they're breaking the law. Purchasing uninsured/underinsured motorist (UM/UIM) coverage can protect you against uninsured drivers. In many states, UM coverage is required by law.
UM coverage will pay for medical bills if an uninsured driver hits you. In some states, UM property-damage coverage is available. If an uninsured driver damages your car and you have UM property-damage coverage, you'll be able to get your car fixed under this coverage, rather than using your collision coverage.

Find out if your state requires uninsured motorist coverage.

What is "personal injury protection" (PIP)?
PIP, which is also known as medical payment insurance, pays for certain expenses for the insured person and passengers. The types of expenses vary by state. Some examples of expenses include: medical and hospital expenses, salary and funeral expenses for bodily injury caused by a covered accident, regardless of who was at fault. PIP is only available in certain states.

If I have medical insurance, do I need personal injury protection?
Your passengers may not have medical coverage, so personal injury protection can be a good idea. Also, if you have both medical insurance and personal injury protection, you can file claims with both insurance companies, and both will pay - if the expenses are covered items.

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