Three Insurance Coverage Types for Car Accidents

A car accident can be quite stressful in monetary, emotional, and physical aspects for all parties involved. Insurance companies try and help ease the stress by offering consumers different car insurance policy coverage for such occasions.

Here’s an overview of the three types of insurance coverage for car accidents:

PiP or Personal Insurance Protection

Personal insurance protection is also called personal injury protection. It is an extension of a car insurance policy that covers medical expenses and lost wages. It can also cover service replacement, rehabilitation and funeral expenses.

Also known as no-fault coverage meaning that regardless of which driver caused the car accident, this insurance may cover some of the medical expenses for both the policyholder and the other persons in the car with the policyholder at the time of the accident.

Unlike other types of insurance, monetary compensation is issued as soon as possible for the insured party. No investigations needed.

Medical Payments Coverage

Medical payments coverage is also called Med Pay. It helps pay the medical bills that you and your passengers may incur during a car accident regardless of who is at fault.

It is different from PiP in that it only covers medical bills. This would be ambulance and hospital bills, doctor visits, and any other medical treatments that are necessary to your recovery.

Uninsured Motorist Coverage

Generally, we assume that if a car gets involved in an accident, the at-fault driver’s insurance would cover for the damage incurred. This, however, is not always the case.

The uninsured motorist coverage helps protect you against drivers who either do not have third party liability insurance or do not have enough money to cover the expenses for the damage and injury they cause.

This type of coverage is divided into the uninsured motorist property damage and the uninsured motorist bodily injury. The former pays for covered damages to your property while the latter pays for covered lost wages, medical expenses, and other damages.

Now that you have an idea of what each type covers, isn’t it about time for you to think which would best fit your need?