Anyone who has ever researched the world of insurance has likely discovered just how many different types of policies are out there. If you want to insure it, chances are some company has created a policy to do just that. But the abundance of insurance options can be overwhelming to people who don’t deal in the insurance world for a living. To get a quick primer on some different (and potentially important) types of automobile insurance, keep reading.
Liability insurance is one of the most common forms of insurance. In South Carolina, drivers are required by law to carry liability insurance, highlighting its importance. Liability insurance is not designed to pay for injuries to the driver carrying the policy, but rather it pays for injuries to others the driver may injure as a result of his actions.
Liability insurance exists to cover incidents where the person holding the insurance is at fault. Liability insurance is made up of two components: coverage for bodily injury and coverage for property damage. As the names suggest, bodily injury coverage pays for the physical harm caused by an accident while property damage coverage pays to fix the vehicle and other property damaged in the crash.
Excess liability insurance
Now that we know what liability insurance is, what on earth is excess liability insurance? Again, as the name suggests, excess coverage is just that, additional coverage for accidents where the policyholder is at fault. Excess liability insurance is sometimes referred to as umbrella insurance and provides an additional layer of protection in the event that a person is responsible for causing serious injury to another person that exceeds the limits of the at-fault party’s basic liability policy. Though many people take out excess liability insurance to cover automobile accidents, it also exists to protect individuals from injuries that take place in other settings, such as in their home.
UM and UIM insurance refer to two separate types of insurance: uninsured motorist (UM) and underinsured motorist (UIM) coverage. These kinds of coverage can be critically important to motorists across South Carolina who might find themselves stuck footing the bill for an expensive accident if the at-fault driver either completely lacked insurance or lacked sufficient insurance to pay for the damages caused by his actions.
UM insurance refers to a policy that protects people on the road from drivers who are either totally uninsured (which is illegal, by the way) and UIM insurance refers to a policy that protects people from drivers without sufficient insurance to pay for potentially costly accidents. UM and UIM coverage works by having the insurance company of the person that was injured step in and pay for any damages that exist beyond what the at fault driver is able to pay. Given the alarming number of uninsured or underinsured drivers on South Carolina roadways, this kind of coverage serves as essential protection.
Medical payments coverage insurance
Medical payments coverage is a special kind of insurance that applies regardless of fault and is used in cases where a driver or passenger in a car is injured. This kind of insurance exists specifically to cover the medical and funeral expenses associated with any covered drivers or passengers following an accident. In some situations, medical payments coverage can be used to cover medical bills if a policyholder is struck by a car while walking, bicycling or riding in someone else’s car.
Personal insurance protection (PIP)
Like medical payments coverage, PIP insurance (personal insurance protection) applies regardless of who is at fault in an injury-producing accident. PIP insurance works by covering not only medical bills but also lost wages.
Currently, PIP insurance is required in 13 states, but is optional in several others, including here in South Carolina. PIP covers not only the driver, but also any passengers in the car that have the driver’s permission to be there. Even if you cause a wreck, under PIP insurance you will still be covered. It’s this no-fault aspect that is one of the most advantageous aspects of PIP coverage.
If you have been involved in an auto accident caused by someone else’s careless, negligent or reckless conduct and are looking for help, contact Auto Accident Attorney David R. Price, Jr., P.A., today. We are dedicated to protecting our clients’ rights so they get the compensation they need and get back on the road to recovery.
David Price is a Personal Injury, Civil Litigation, Collections, and Criminal Defense Attorney who practices in Greenville, SC. He graduated from the University of Georgia School of Law, and has been practicing law for 12 years. David Price believes in helping those who have been injured. Learn more about his experience by clicking here.