So, there are a lot of different car insurance coverages out there. They all have different (often confusing) names and they all do different things. The thing is that these coverages all work together to protect you from the various risks you face when you get behind the wheel. It’s important to understand how each coverage differs from the next so that you know what risks you’re protected from. Two coverages that might seem similar at first glance are your liability coverage and medical payments coverage. We’ll explain each of these coverages and why they’re different.
What is liability insurance?
When you drive, you’re sharing the road with other drivers. What happens if you hit another driver or cause an accident? You’d have some legal responsibility to the other driver. That’s where your liability insurance comes in.
Bodily injury liability can cover the other driver’s medical bills and their pain and suffering. It can even cover the wages they lost while unable to work due to the accident.
Property damage liability can help cover the expenses of repairing or replacing the other driver’s car. (It can also cover other property that you happen to take out, such as a fence.)
It’s also important to note that your liability insurance can help cover your legal expenses if you’re sued because of the accident.
Most states require drivers to carry liability insurance to legally be able to hit the road. Georgia requires drivers to have $25,000 of bodily injury liability per person, $50,000 of bodily injury liability per accident, and $25,000 of property damage liability. Again, this is to cover your obligation to the other driver if you hit them and cause an accident. With medical expenses being what they are, it’s easy to see why this is such an important coverage.
It’s important to have high enough limits of insurance to truly protect yourself if you’re involved in an accident. You want to be able to cover the expenses you’re obligated to pay to the other driver without putting your assets in jeopardy. Serious accidents can come with some very serious expenses.
What is medical payments coverage?
Medical payments coverage, on the other hand, is a no-fault coverage that can help you cover your own medical bills – and those of your passengers – if you’re in an accident. It may also help you if you’re riding in someone else’s car and get into an accident. Plus, if you’re walking or biking and you get hit by a car, medical payments might help you cover those medical bills.
However, you need to be sure that you understand how your medical payments coverage works with your health insurance. If you have health insurance that would be there for you in the event of an accident, you might not need medical payments coverage. Make sure that you check out your health insurance to see what would happen if you’re in a car accident.
So, the main point we’re making is this: bodily injury liability doesn’t help cover your medical bills following an accident. That’s not what it’s designed to do. (Likewise, it won’t cover your own car following an accident. You would need collision coverage to help you out in that case.) Medical payments, however, can help with those medical bills.
The other point we’re making is that it’s important to understand the coverages you have for your car and how they work. Are you covered for all the risks you face? Do you have coverages like collision and comprehensive that can help repair your car if something happens to it? Do you have coverage like rental reimbursement that can help cover the costs of renting a car if yours is in the shop following an accident?
It might seem overwhelming, but it doesn’t have to be. Our team of insurance agents can help you get the car insurance you need to make sure you’re protected when you hit the road. We strive to make insurance easy, too, so that you don’t have to worry about getting stressed out when you get auto insurance. Anyways, all this is to say that you can get in touch with our team by filling out our online form, giving us a call, or messaging us on LiveChat. We’re happy to help with your insurance needs.