Financial Security and Your Insurance Policy

There are more cars on the road each year. As this number goes up, the chances of a car wreck will also go up. If you get in a car wreck, the car insurance you have can make a large difference in how much you have to pay. So how do you know what insurance you need and how much to buy? Required coverage varies based on the state/province but typically includes the following: Liability: Bodily injury and property damage that you have caused will be covered under this type of insurance. Bodily injury damages can include medical fees, and lost wages. Property damage can refer to damaged property or loss of use of property. It can also cover your legal fees if you are sued. Recommended, higher levels of liability insurance can be purchased that take care of more than the stripped-down, state-mandated varieties. Personal Injury Protection: This is mandated in some states and is optional in others. Sometimes referred to as no-fault coverage, this pays the medical treatment for you or your passengers regardless of who was at fault. This insurance may also cover lost earnings, service replacement and funeral costs. The minimum amount of personal injury protection is usually set by the state. Medical Payments: Medical payment coverage can be purchased in states that are not considered no-fault; it will pay regardless of who carries responsibility for a collision. This insurance will pay for all insured person's reasonable medical and funeral expenses for bodily injury from an accident. Collision: This pays for damages to your vehicle caused by an accident. Comprehensive: Protect your vehicle from all non-collision damages by purchasing this type of coverage. This includes protection from burglary, vandalism, and fire or flood damage. Uninsured Motorist: This pays for repair and replacement costs when an insured person is injured in an accident caused by another person who does not have insurance. Under-Insured Motorist: Similar to uninsured coverage, this kind of insurance covers you from people driving without enough insurance coverage. Other kinds of coverage, including car rental, can also be purchased. State Farm Agent Clermont