Obtaining auto liability coverage can help you financially if you are at fault for a vehicle-related accident. To meet the state’s minimum vehicle insurance requirements, you must have two types of liability coverage in most states. The following are the two types of liability coverage available:
Bodily injury liability covers medical expenses incurred as a result of an occurrence for which you are at fault. If you or individuals specified on your insurance hurt a third person while driving, your liability coverage will pay for it. Bodily injury liability can help compensate not only medical bills but also lost wages for the affected party.
PIP, unlike bodily injury liability coverage, covers medical costs, lost earnings, and other expenditures for you. It can also cover drivers on your policy, and passengers in your vehicle, regardless of who is at fault. PIP coverage is not available in every state. PIP coverage often results in increased premium costs because it forces your insurance carrier to help cover expenses regardless of who is at blame for the occurrence.