Should your car insurance policy include personal injury protection?

There are different types of car insurance coverage, and sifting through the options can be intimidating. The main reason why you get a car insurance policy is to protect yourself and the people you love in the event of a car accident. Insurance also protects from certain liabilities if you are at fault. Collision and personal injury coverage helps to protect you from two crucial instances.

Collision coverage is one of the more popular types of car insurance because it covers car damage, regardless of the source of collision. It covers only the policy holder’s vehicle, not the other party’s. While it is optional, getting collision insurance can be a smart financial move. While it’s true that a driver can sue the other party for damages, that only works if the accident isn’t his fault. If the blame falls on you, you get stuck with a damaged car. Collision coverage will reimburse you for your repairs, regardless if the accident was your fault. If you have an older model, however, it may not make sense to purchase collision coverage since it is usually based on the car’s cash value. You will benefit from buying this type of coverage if your car is leased or financed and if you have a new vehicle or one that is in excellent condition.

Another popular coverage is personal injury protection, also known as PIP. PIP covers medical, hospital and funeral bills of the person insured and his passengers, as well as pedestrians struck by the insured. The amount of protection that personal injury coverage offers may vary depending on which state you are in. PIP covers the policyholder, relatives who live in the same household, passengers in the event of an accident, and other authorized drivers.  It also covers those mentioned even if they are in another person’s car or are hit by a vehicle while they are walking.

Collision coverage and personal injury protection are two powerful tools in protecting a driver in cases of an accident. Accidents can be very costly, so it’s best to keep these two options on hand.