What Should Be Covered In Any New Policy

Everyone who drives needs car insurance, but every state has its own regulations about what a car insurance policy needs to cover, and what levels of coverage the policy requires. For a new driver, someone purchasing a new car, or someone switching insurance companies, this can make the process of finding a good car insurance quote difficult, as knowing what to look for and how much of it should be there can often be confusing. Despite wide differences in state regulations and expectations, as well as a great deal of variation in how insurance companies conduct their business, there are a few basic items that should be included in any new car insurance policy.

The most important broad type of coverage that should be included in any new policy is meant to protect the drivers and passengers of both vehicles, and is divided into three types. The first is bodily injury (BI) coverage, which covers the driver of the other vehicle, as well as all passengers, both in your vehicle and the other vehicle, in the event of an accident. The second is personal injury protection (PIP), which protects you, the driver, in the event that you are inured, either by another driver’s negligence or your own fault. The third is property damage (PD), which covers damage to other people’s property – vehicle or otherwise – that is damaged in the event of a crash. Although every state mandates that some level of this coverage be present in a car insurance quote, the amount required fluctuates greatly from state to state, with lows as little at $5000, and highs as much as $25,000 for each type.

Another important aspect of a new car insurance policy is under-insured motorist coverage. This protects you in the event that the other driver in your collision does not have enough coverage to fully pay your medical or property-damage bills. This type of coverage often goes hand-in-hand with uninsured motorist coverage, which will operate in the event that the other driver has no car insurance at all. While these types of coverage are not mandated by all states, it is a good idea to make sure that your new car insurance policy has at least some limited form of under-insured and uninsured motorist coverage; despite steep fines and possible license loss, many drivers still ignore insurance requirements.

In addition, any new car insurance quote should include car insurance coverage for you in the event that your vehicle is damaged or stolen. Fire and theft coverage is typically inexpensive, but always a good idea. Although there are myriad of other, more specific, car insurance coverage options, it is essential that any new policy cover everything listed above.

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