Different Types of Insurance Policy Coverage

Car Accidents
May 3, 2013

If you’re looking for a new car insurance quote sometimes all of the insurance lingo can get confusing.  We’ve broken down the major types of insurance coverages to help you understand your policy a little bit more:

Bodily Injury Liability

This type of car insurance coverage protects you in the case of a car accident where you cause an accident and have injured someone else.  You, as the policy holder, are typically required to hold a minimum amount of coverage depending on where you live and if you own your car or not.  You would be responsible for any medical costs that came along with the accident.  Medical bills from car accident injuries can add up super fast, so it is important to have adequate coverage.

Personal Injury Liability

Personal Injury coverage, aka PIP, covers medical expenses whether or not you are at fault in the accident.  It covers medical expenses and sometimes other damages and lost wages.  Personal Injury coverage is sometimes required by law to have, and it’s an  important part of a well rounded auto insurance policy. At this time Washington and Oregon require PIP for every driver.

Property Damage Liability Coverage

This type of insurance covers the costs of damages to a car and/or items in the other car involved if they are damaged and you are at fault.  Property Damage coverage also covers items that you may have hit (for example, a mailbox or post) and damaged. The coverage not only covers the costs of the new parts needed for repairs but also the cost of labor.  This is one of the most important parts of a good insurance policy as almost all accidents end up with property damage of some kind.