In some "no-fault" states, a dollar amount for medical and rehab expenses that must be reached in order to file a lawsuit for damages for non-economic damages (i.e. Most insurance companies offer a wide range of coverage amounts. In states where Med Pay is optional, drivers may choose to rely on their own and their passengers' own health insurance to cover resulting injuries. Med Pay is sold in states with traditional tort insurance laws. This coverage (usually optional) pays the doctor, hospital bills, and funeral expenses for injuries to you and the passengers in your car, regardless of who causes the accident, up to the policy limits. Medical Payments Coverage (MP or Med Pay) In 47 states and the District of Columbia, it is illegal to operate a vehicle without obtaining proof of insurance.Įnacted by Congress in 1945, this law grants authority to the states to tax and regulate the business of insurance (see regulation). Typically, this refers to the law that requires motorists to have auto insurance, however most states also permit a bond or cash deposit as evidence of the ability to pay for negligence in causing losses to others from the operation of a motor vehicle. Tangible, out-of-pocket expenses, such as medical expenses, rehabilitation expenses, lost wages and essential services. If you can afford to carry a higher deductible on collision and comprehensive coverage, you can substantially lower your costs. This is your out-of-pocket expense that you agree to pay for losses up to set amount, such as $250 or $1,000. The first page of the insurance policy that generally includes your name, address, the insured property, its location and description, the policy period (how long the coverage will be in force), the amount of the insurance coverage, the premiums and additional specific information provided by the insured. According to 2004 data from the National Association of Insurance Commissioners, 77 percent of insured drivers carry this coverage. The price of comprehensive insurance is affected by the risk of loss, meaning the likelihood that an insured car will be stolen or damaged, and the car's value at the time of the loss. Examples include: hail damage, glass breakage, fire, vandalism, damage from an animal, flood, earthquakes, falling objects and theft. Optional coverage for when your car is stolen or damaged in ways that don't involve a collision. According to 2004 data from the National Association of Insurance Commissioners, 72 percent of insured drivers carry this coverage. It doesn't cover whatever the car collided with (that's what your property damage liability is for). It also can come into play if you hit a pothole that severely damages your car. Optional coverage for when your car is damaged as a result of colliding with another object-a brick wall, for example, or a rollover. This coverage is required in Colorado, New Mexico, Utah and Wyoming. See explanation of limits, above.īI pays for injuries to other people when the insured vehicle's driver is legally at fault. This is a general term that covers bodily injury (BI) liability and property damage (PD) liability. In other words, coverage in case you cause an accident where there is either physical or property damage to other people. Protection in case others hold you legally responsible for bodily injury and/or damage to property losses incurred as the result of a motor vehicle accident. Most states require a mandatory minimum amount and insurance companies offer the option to purchase more. They represent (in the $ thousands) your liability limits for per-person bodily injury, bodily injury for all persons injured in any one accident, and property damage liability. You will see three numbers when you are buying liability coverage. Here is a translation of some basic insurance lingo: If you feel like you need to take a foreign language course to "speak insurance" don't worry, you're not alone! But, you need to at least understand the basic auto insurance terms because they spell out what you are and aren't covered for in your policy. Your car insurance is really six separate policies-some are required, others optional-carefully weigh your risks when buying protection for you and your family. CO Insurance Consumer Satisfaction Poll.Wildfire Mitigation: Colorado Homeowners Survey.Factors Affecting Homeowners Insurance Cost.CO Auto Insurance Marketplace & Fact Sheet.Seat Belts, Air Bags & Child Passenger Safety. ![]() NM Personal Insurance Credit Information Act.How do I read my auto insurance policy?.
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