Property Insurance and PIP: Do You Have Enough?

Property Damage Auto Insurance

Property damage refers to damages to someone else's property after an accident that you caused. The most common property damage in an automobile accident is damage to the other party’s car, but property damage can cover other types of property as well.

What Property Auto Insurance Covers

Properties covered by liability insurance varies policy to policy. Review your policy carefully to be certain of your coverage. Generally, auto liability insurance covers damages to other vehicles or other personal property such as a mailbox, fence, or building. Property damage liability will not cover damages to your car. To receive compensation for this type of damage, you would need collision or comprehensive coverage.

When you are involved in an automobile accident, there is usually going to be damage to personal property. This makes property damage liability insurance very important. It can save you from the risk of lawsuits involving damages to another party's property.

As you review your auto insurance policy you will see the values of coverage, usually represented in a format like this: $15,000/ $30,000/ $20,000.

The first two figures are coverages for bodily injury. The 3rd is property damage coverage. Unlike with bodily injury coverage property damage coverage is not split by person or by accident, it only covers the maximum amount per accident.

Be sure you understand your state's requirements for liability insurance to best comparison shop for the property damage coverage that you want.

Bodily Injury Auto Insurance

Bodily injury liability insurance protects you financially if your automobile accident results in physical injury to another party. Any injuries to another party in an automobile accident where you are found at fault will be your responsibility financially.

Bodily injury insurance pays funeral costs and medical expenses for a party who is hurt in an accident that you caused. It will not cover costs for injuries that you receive. This coverage will also pay for long-term nursing care lost income and in some cases even punitive pain and suffering compensation, as determined by a court.

It should be noted, however, that bodily insurance coverage will not pay for injuries caused intentionally. Check over your policy carefully with your agent to know exactly what is and what is not covered in the event of an accident.

How to Buy Bodily Injury Insurance

It will be represented by two values like: $15,000 / $30,000

The two coverages IN your auto liability insurance policy covers the limit per person involved in the accident and the limit per accident, in case multiple people are hurt in the crash.

It is recommended that consumers purchase the highest bodily injury coverage that they can afford.

If you do not have sufficient coverage for your auto insurance to pay for all injury-related cost from the accident, then you are at risk of a lawsuit for the balance of the money, which could put other assets such as your home or business at risk.