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Most states require that you have an auto insurance and have laws that establish the minimum level of coverage you should hire.
However, it may be that the minimum limits required by their state are not necessarily appropriate.
A car accident can cost much more than the limits established by most states. The Insurance Information Institute recommends at least have protection for bodily injury of $ 100,000 per person and $ 300,000 per accident (known as 100/300).
Understanding the limits of liability auto insurance
Here’s how to read the minimum liability auto insurance.
The first number is the maximum liability insurance for bodily injury suffered by a person in an accident.
The second number is the maximum liability insurance for all injuries in an accident.
The third issue: is the maximum liability for property damage in an accident.
For example, if you live in New York, the minimum limit of liability for injuries is $ 25,000 per person, $ 50,000 for all injuries and $ 10,000 for property damage in an accident (presented as 25/50/10). In addition, New York required to have personal injury protection (PIP, its acronym in English) and for bodily injury coverage against uninsured motorist (UM, its acronym in English).
What UM mean? Then in the graph on the right, you see the guide to the anachronisms of auto insurance:
UM = uninsured motorist coverage. UIM coverage = underinsured motorist. UM BI: bodily injury coverage against uninsured driver. UMPD: coverage for property damage uninsured motorist. PIP: personal injury protection. PPI: insurance protection of property (Michigan). BI Liability: bodily injury liability.
Coverage for uninsured motorist and underinsured A total of 21 states, plus the District of Columbia, only require coverage for bodily injury against uninsured motorist (UM) or both: UM coverage and personal injury coverage for underinsured motorist (UIM).
The personal injury insurance against uninsured driver, covers medical expenses if you or your passengers are injured caused by an uninsured driver.
Insurance underinsured motorist applies when the guilty party is insured but insurance limits are too low to pay all your medical bills.
Coverage for property damage against uninsured driver (UMPD) covers the damage to your car from an accident caused by an uninsured motorist guilty.
The UMPD insurance is required in only eight states.
What does a no-fault auto insurance? If your state has a law on auto insurance “no fault” auto insurance your policy will pay for your medical bills and your passengers regardless of who caused the accident.
Coverage “no fault” is his personal injury protection (PIP), you may have a copayment and / or deductible. The no-fault coverage applies only to claims for personal injury. If your car also suffered damage, you must file a claim for damage against liability coverage for damage to the property of the guilty party.
Laws “no fault” are intended to keep the number of insurance fraud.
Deciphering the auto insurance liability beyond the state borders
If you maintain the minimum auto insurance required in your state and have an accident in another state that requires higher minimum coverage or other coverage (such as personal injury protection), commonly your policy automatically increase to meet the requirements minimum coverage of that state.
For example, if you are a driver of Connecticut (where the minimum liability coverage is $ 20,000 protection for bodily injury per person, $ 40,000 protection for bodily injury per accident and $ 10,000 for property damage per accident or 20 / 40/10, as it is commonly called) and is involved in an accident in New York (which requires liability coverage of 25/50/10), your auto insurance will automatically be extended to meet the requirements of New York .
This increase can be favorable, especially when you cause a lot of damage to property.
Some states restrict the ability of its citizens to sue each other for moral damages after a car accident.
Puerto Rico (territory of the United States) and 12 other states have laws “blameless” Florida Hawaii Kansas Kentucky Massachusetts Michigan Minnesota New Jersey NY North Dakota Pennsylvania Utah
These laws mean that your insurance company will pay for damages for bodily injury regardless of who is at fault in the accident. However, these same states allow their citizens, then an auto accident litigation against people from other states.
For example, if you live in Pennsylvania, your ability to sue for damages is limited. When you hire coverage for your car has two options liability, “full tort” or “limited tort”.
If you choose “limited tort”, you will pay lower premiums but you can not sue someone for moral damages Pennsylvania unless you have suffered a serious injury and medical bills exceed the minimum amount established.
In your auto insurance policy it describes what constitutes a serious injury. If you choose to complete grievances, your premiums will be higher but it will be able to sue regardless of the amount of your damages.
But this does not apply if someone hits you from another state. Even if you have “limited tort” of Pennsylvania, require compensation for moral damage in the judicial system if someone hits you out of Pennsylvania.
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