Car insurance is a crucial aspect of vehicle ownership, mandated by law in most states to protect drivers, passengers, and other road users in case of accidents. The types and amounts of insurance required can vary depending on the state or country, but certain fundamental coverages are universally mandated. This blog aims to clarify what car insurance is needed, emphasizing the legal obligations and practical considerations for drivers.
Legal Requirement: Liability insurance is mandatory in virtually all states within the United States and in many other countries. This coverage protects you financially if you are found legally responsible for causing injuriesto other people or damage to their property in a car accident.
Bodily Injury Liability: Covers medical expenses, lost wages, pain and suffering, and legal expenses of individuals injured in an accident where you are at fault.
Property Damage Liability: Covers repair costs or replacement of property (such as vehicles, buildings, or other structures) damaged in an accident you caused.
Minimum Coverage: States typically set minimum liability coverage limits that drivers must purchase. These limits vary widely, so it’s essential to check the requirements in your specific location. In Missouri, it is required that drivers have what is known as “25/50/25” coverage. This means you must have bodily injury liability: $25,000 per person $50,000 per accident, and $25,000 in property damage liability.
Legal Requirement: Some states require Personal Injury Protection (PIP) or Medical Payments coverage. Though Missouri does not, it is still important to know the benefits of PIP. These coverages pay for medical expenses for you and your passengers injured in an accident, regardless of who is at fault.
Personal Injury Protection (PIP): Provides broader coverage than Medical Pay, including coverage for lost wages and other non-medical expenses related to injuries sustained in an accident.
PIP can be used to cover a variety of expenses such as hospitalization, ongoing healthcare, accidental death benefits, lost wages, funeral costs, and more.
Legal Requirement: In Missouri, uninsured/underinsured motorist (UM) coverage is mandatory. This coverage protects you if you are involved in an accident with a driver who either doesn’t have insurance or doesn’t have enough insurance to cover your damages.
Uninsured Motorist Coverage: Steps in when the at-fault driver has no insurance.
Underinsured Motorist Coverage: Kicks in when the at-fault driver’s insurance is insufficient to cover your damages fully.
This can also be helpful in hit-and-run situations, where you cannot obtain the at-fault party’s information.
Legal Requirement: These coverages are typically not legally required but may be required by your lender if you have a car loan or lease. In Missouri, comprehensive coverage is optional and may be beneficial for your situation.
Collision Coverage: Pays for repairs to your vehicle after a collision, regardless of fault.
Comprehensive Coverage: This covers damage to your vehicle caused by incidents other than collisions (e.g., theft, vandalism, natural disasters).
Depending on your circumstances and preferences, you may also consider:
Rental Reimbursement: This covers renting a vehicle while yours is being repaired after an accident.
Towing and Labor Coverage: Pays for towing and roadside assistance.
Conclusion
Understanding what car insurance is needed involves knowing your legal obligations under local laws and considering additional coverages based on your financial situation and risk tolerance. While liability insurance is typically the minimum requirement, additional coverages like PIP, uninsured motorist, and comprehensive/collision can provide added protection and peace of mind. To ensure compliance and adequate protection, consult with an insurance agent or legal advisor familiar with the laws in your area.
By prioritizing the right car insurance coverage, you not only fulfill legal requirements but also safeguard yourself and others against the financial consequences of accidents on the road. Stay informed, stay protected.
If you or someone you love has been in a car accident, is having trouble with insurance, and needs help: Contact us at The Hines and Wilson Law Firm today for a consultation completely free of charge. One of our experienced attorneys can help fight for you and the compensation you deserve.
