by Liability Coverage
Liability is often said to be “half insurance”, most states have relevant provisions mandatory requirements, including BIL/ personal injury liability insurance and PDL/ property damage liability insurance.
In the event of an accident, if you are the responsible party, the Liability insurance will cover the cost of medical treatment for personal injury and property damage (repairs, property damage, etc.) within the scope of the insurance.
For example, Oregon's minimum liability coverage requirement is 25/50/20, where:
● 25 means that the other party's single medical expense insurance will pay up to $25,000;
● 50 means that if multiple people are injured in a single accident, the maximum total insurance payout is $50,000;
● 20 means that the insurance will pay the other party up to $20,000 for property damage.
Uninsured / Underinsured Motorist Coverage
Uninsured Motorist insurance covers you when the other person is at fault and does not have insurance, or if you are involved in a hit-and-run.
Uninsured Motorist (UM) insurance is also divided into Bodily Injury (UMBI) and Property Damage (UMPD), and the amount of coverage is usually the same as the liability.
Underinsured Motorist (UIM) insurance steps in if the other party is covered for fault, but not enough to cover your losses.
Medical Payments Coverage
In the event of an accident, MedPay insurance will cover medical (and even funeral) expenses incurred by you or the authorized driver, regardless of who is responsible. You’ll even pay for medical expenses if you’re injured while riding in another person’s vehicle (check with your insurance company for specific coverage).
Personal Injury Protection
Similar to MedPay, medical expenses are reimbursed regardless of which party is responsible. But PIP reimbursement is broader, covering non-medical expenses such as lost work and additional childcare costs.
Collision Coverage
Reimburses the cost of car repairs due to collisions (hitting vehicles, railings, trees, flipping cars, driving over potholes, etc.). There is no specific amount of coverage for collision insurance, which is capped at the Actual Cash Value of your car minus Deductible. The price of collision insurance is usually deductible, and the lower the deductible, the more expensive the insurance will be. Generally speaking, when leasing or borrowing a car to buy a car, the car dealers or banks will force the car owners to buy collision insurance, and the rest are voluntary.
Comprehensive Coverag
When there are unfortunate circumstances other than collision damage, such as being dented by hail, damaged by fire, malicious damage, etc., at this time, Comprehensive accident insurance is needed to pay for car maintenance. Like collision insurance, there are deductible options, and the compensation limit is ACV minus deductible. If there is a loan or leasing, there are usually mandatory requirements.
Additional insurance options
If the car needs to be repaired at a factory, insurance will cover the Rental cost during this period, usually with an upper limit to the total cost per day or per accident.
Towing and Roadside Assistance: Insurance offers free towing and roadside assistance (distance restrictions may apply) or other roadside assistance.
Gap Insurance: covers the difference between the current value of the car (payable by collision/comprehensive) and the loan amount minus deductible. If the downpayment at the time of loan is less or the depreciation of the vehicle is more serious, you can consider adding a difference insurance for protection.
