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What Are the Different Types of Car Insurance?

Car insurance is something that everyone needs, but not everyone understands. Between all of the different types and options out there it can intimidating to know what to pick. There can be a learning curve when it comes to insurance especially after you have had an accident and are determining how you are covered.

When you have been in an accident and have a personal injury case you will more than likely hear three different types of car insurance discussed. It’s important for you to understand what they are.

3 Types of Common Car Insurance

Liability Insurance (At-fault)

Liability insurance is insurance purchased by a car owner which provides payment to an injured party when the owner or driver of the insured car is found to be at fault. Liability insurance is required in the State of Tennessee. The required minimum limits of your liability car insurance are:

• $25,000 for each injury or death per accident.
• $50,000 for total injuries or deaths per accident.
• $15,000 for property damage per accident.

Uninsured Motorist (UM)

Because everyone does not follow the law requiring them to purchase liability insurance and because the minimum required by law is often insufficient, you are well advised to purchase uninsured motorist coverage on your vehicles. Uninsured motorist coverage is insurance that can be purchased to protect you in the event you or one of your household family members is injured by someone who does not have automobile liability insurance. In some cases, it acts as underinsured motorist coverage that can provide payment over and above the at-fault person’s liability insurance. Uninsured motorist coverage (which includes underinsured motorist coverage in Tennessee) is very important insurance that you should purchase because it provides protection in those cases where the at-fault party either has no insurance or has insufficient insurance to cover your injuries and damages.

Medical Payment Coverage (Med pay)

Medical payment coverage is insurance you can purchase with your car insurance. It is often referred to as “med pay” and in the event of a car accident, it can pay you and even your passengers for medical bills up to the limits of coverage you purchased. This is a limited payment and the limits are often as low as $1,000 – $5,000 per accident. Depending on the amount you purchased, it can help pay medical bills.

There are other types of automobile insurance coverages, but these three are the most common types dealt with by vehicle accident victims in personal injury cases.

Need help understanding how car insurance affects your personal injury case? Contact us today. We would love to help you.