byAlma Abell

Most people view Automobile Insurance in Santa Cruz as an inconvenience. After all, paying monthly for coverage, especially for those who have never been in an accident, may seem like a waste of financial resource. However, when there’s a claim, auto insurance from Coastautoinsurance.com can be a lifesaver; and in most places, it is legally required. To help customers find the right coverage, below is a guide to insurance types and amounts.

The Basics of Liability Insurance

Auto liability coverage protects the other motorist from damage caused in an at-fault accident. Its three numbers represent the dollar amounts for three different liability types. For instance, if the policy is 30/60/20, it includes $30,000 in bodily injury for one injured victim, $50,000 for everyone and $15,000 in property damage insurance. In some situations, there is no minimum coverage amount, and each state has its own rules. An insurance agent can help a customer determine their needs in accordance with state law.

PIP

PIP (personal injury protection) covers the policyholder and family in the event of an injury accident. Those who currently have a health plan usually decline PIP, unless it is required by state law. Ask an agent about the state’s personal injury protection rules and requirements.

Collision and Comprehensive Coverage

If a person has a car loan or lease, the lienholder typically requires the purchase of collision and comprehensive coverage. The latter covers non-accident damage, such as that caused by a fire or a storm. Collision insurance covers damage caused by impact with another vehicle or an object. If the vehicle is older and owned outright, this Automobile Insurance in Santa Cruz may not be necessary.

Medical Payments

On the surface, PIP and medical payment coverage are almost the same. However, medical payment coverage starts where PIP stops. For instance, if the accident’s medical expenses exceed the PIP coverage limit, medical payment coverage is used to pay the remaining expenses. This is critical in areas where PIP only covers a portion of overall expenses. Here, medical payment coverage adds protection for the policyholder and it can prevent them from going bankrupt due to medical bills.

Visit Coastautoinsurance.com for further details.