Automobile Insurance - Mandatory Coverage
As expected, mandatory coverage is a component of automobile insurance that is required by law in all states although the minimum amounts vary from state to state. The three main components of mandatory coverage are, Liability, Medical Payments, and Underinsured and Uninsured Motorist
Liability for Automobile Related Injury and Damage
This is the most important type of automobile insurance. It protects you against the cost of damage and injury to others in the event of an accident. Typically, it is split into three categories and is often quoted as (100/300/100) which means : $100,000 worth of coverage for injuries to others, $300,000 worth of injury coverage for all parties, and, $100,000 worth of coverage for property damage>. States specify the minimum required amount of coverage needed, but it never hurts to have a little extra coverage in this arena.
Medical Payments
This portion of the automobile insurance policy covers the costs of immediate medical treatment for those involved in an accident. In some cases, this may also cover lost wages or salary for someone who has been hurt in a car accident.
Underinsured and Uninsured Motorist
These cover you in the event that the other driver does not have automobile insurance, or has coverage which is insufficient to cover the costs that result of the accident. Different states require one or both of these. Once again, the piece of mind is worth paying for.
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