Jim Pretin asked:


The law requires you carry auto insurance in the state where their vehicles are placed (required in nearly all 50 states). Each one has it, but hardly anyone understands the provisions or coverages outlined in your policy. Auto insurance is extremely important because it not only covers and their vehicles, but also covers your liability associated with damage you cause to other people or property. There are several important coverages you need to understand. The first coverage you will see mentioned is called bodily injury liability. This is the amount of liability coverage you have for injuries you cause to other people in an accident. Sometimes listed as a limit of the fracture, in this case the first number is the amount of responsibility you have per person, and the second number is the maximum total amount of money your policy will pay all persons injured. It is considered customary to maintain at least $ 100,000 of bodily injury liability per person and $ 300,000 per accident. Sometimes injury is grouped with responsibility for material damage (damage is damage you do to other vehicles or property in an accident) and is listed as a number. This is known as a single combined limit. It is recommended to keep the $ 300,000 combined single limit liability for bodily injury and property damage. The following coverage you will see that responsibility in question is called uninsured / underinsured motorists. This number must be equal to the responsibility you have for bodily injury and property damage. This coverage is mandatory in most states. It covers if you are involved in an accident and the other driver was at-fault, but that the other driver or no insurance or coverage is not adequate compensation for their damages. The cover uninsured / underinsured motorist kicks in to fill the gaps. After the uninsured motorist insurance protection you should consider something called personal injury (PIP). Some states require this coverage, some do not. In states that require it is best to keep $ 250,000 of coverage of the PIPA. Not those states may have different laws require that health insurance mandate assigned to cover any and all injuries associated with an auto accident. You should contact your agent if your policy is not clear on this, if the PIP coverage is required in your state, make sure you have it. Straighten below or in the vicinity of the PIPA you might see something called Additional PIP. Some states make this available while others do not. The additional PIPA provides you with certain income level to a certain maximum amount to help offset lost wages if you can not crippled as a result of an auto accident and work. Additional PIP also includes a specific amount for funeral expenses to be incurred by her family if she killed in an accident. If you do not have additional coverage of the PIP policy, call your agent immediately and find out if available. The following articles are listed in its comprehensive coverage policy and collision. Covers comprehensive you for the damage done to your car when caused by such things as fire, theft, a rock hitting the car, or hitting an animal on the road. Collision pays for damage to your vehicle when the cause is an accident involving a collision with another car or other object on or near the road. The comprehensive coverage and collision is normally subject to a deductible, you should see mentioned in your policy. The two final coverage policy listed in order are rental reimbursement and towing. Rental Reimbursement pays a set amount per day to cover costs associated with having to rent a car if your vehicle has become disabled following an accident. The coverage of the trailer, as the name suggests, covers the cost of the trailer when his car was towed after an accident. I hope this has helped you understand your auto insurance policy. Although almost everyone has a car has insurance, most people have no idea what it covers. So when it comes time to file a claim, find that their policy does not cover their needs sufficiently. Use the information that was presented here to help you make smart choices so you can be prepared if anything happens.