Know Your Auto Insurance: PIP, UIM, UM, Liability, Comprehensive, Collision. What Does It All Mean?

Most Americans know they have auto insurance, however, most are unable to explain their coverage. Insurance is often complex and difficult to understand—especially in a time of crisis. For those drivers without insurance, the consequences are especially severe for everyone involved. Learn more about the terms typically included in an auto insurance policy and what they mean for you. If you’ve been seriously injured due to the negligence or reckless behavior of another driver, contact a Kentucky personal injury lawyer without delay. 

The Statistics

If you don’t understand auto insurance, you’re not alone. In a recent survey conducted by The Zebra, 22 percent of those surveyed didn’t know they are required by law to have insurance.  Other survey responses included:

• 81 percent stated they have the coverage they need but 99 percent failed to correctly identify the most basic types of coverage.
• A mere 35 percent knew that liability insurance covers damages caused by another insured driver—a disturbingly low percentage given liability insurance is required in every state except New Hampshire.

Learning the basic terms is one of the best steps you can take to assuring you are properly insured.

Common Auto Insurance Terms

PIP—Personal Injury Protection is extra coverage for medical bills no matter who is at fault. With the ever-growing costs of health care, pursuing a legal claim is still a viable option, even with this coverage. PIP is not available in all states.

Uninsured/Underinsured Motorists Protection—Not everyone practices due diligence when it comes to respecting state laws. Adding extra protection in your policy for encounters with uninsured or underinsured motorists can bridge the gap for accident expenses. Even with this protection, you will still want to consult with a Kentucky personal injury lawyer to discuss your options. 

Liability—This is perhaps the most important of all auto insurance terms. Liability insurance covers you when you are at fault for an accident. Most states have a minimum requirement for this coverage.

Comprehensive—This type of auto insurance covers incidents not related to a collision. For example, hitting a deer, weather damage, vandalism, and even theft fall under the comprehensive section of your policy. Comprehensive is required if there is a lien on your auto.

Collision—In the event, your car needs repairs due to an accident, collision coverage will pay for them. If your vehicle is totaled and the cost of repairs exceeds the value, collision coverage pays you the value. Collision coverage might not be worth the expense if your vehicle is older and doesn’t have much value.  The coverage is required for autos with liens.

About Saladino & Schaaf

There are many responsible drivers on Kentucky streets and highways. Sadly, it only takes the actions of one distracted, drunk, or speeding driver to cause permanent and debilitating injury to you and your passengers. No one should have to pay out-of-pocket due to the negligence or reckless behavior of others. Depending upon the circumstances of your case, you may be entitled to compensation for medical bills, lost wages, and pain and suffering.

The lawyers at Saladino & Schaaf have over 85 years of combined experience representing Kentuckians in car accidents cases. If you have been injured in a car accident and believe the other person is at fault, we encourage you to contact us as soon as possible. You may be entitled to compensation for your injuries and damages to your car. However, you must act quickly. There are time limits on legal actions.

Call (270) 444-0406 or contact us online to schedule your free consultation today.