Buying auto insurance in Chesapeake, VA, and other areas of the country can be confusing and complex. Here are a few different types of insurance policies you can choose from, and what they cover.
Liability Insurance
This includes bodily injury, i.e. injuries that you cause to others, and property damage, which covers damage done to someone else’s property, including vehicles. Many states have minimum liability levels, but in most cases, they are inadequate. If the damages are more than your insurance covers, your assets will be used to pay all damages. This could result in bankruptcy if you’re not adequately insured.
No Fault Insurance
About half the country has some form of no fault insurance law, also known as Personal Injury Protection (PIP). No fault insurance means that you can claim personal injury damages from your own insurance company (within limits) instead of trying to prove in court that the other party was at fault. This covers bodily injury only, not property or vehicle damage.
Collision
This covers damage that was caused to your own vehicle by you; this type of insurance usually requires a higher deductible, but may result in a lower premium. The amount of collision coverage will depend on the age and value of your car. This is usually a mandatory requirement for a car that has a loan or is leased.
Uninsured Motorist insurance
If you get into an accident with an uninsured motorist, either your insurance company will pay the damages (and thus raising your rates), or you will have to go to court to have the other party pay. Either way, you end up paying more than you should, not to mention the aggravation involved. To protect yourself, you can purchase uninsured motorist insurance, which covers all hit-and-run accidents, as well as accidents which involve other parties being uninsured.
