Personal Injury Protection, or Medical Payments, pays for your own medical expenses, any lost wages and whatever other costs may arise when you're injured in an accident, in some states. It usually pays about 80 % of the losses. It also pays a death benefit. PIP is required in New York, New Jersey, Florida, Arkansas, Delaware, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, North Dakota, Oregon, Pennsylvania and Utah.
A few states require you to purchase auto insurance that covers your medical expenses, pain and suffering losses and, in some states, motor damage in the incident where the other motorist is at fault and is either not insured or underinsured. See the chart below to find out if it applies to you.
State | Liability limits (in thousands of dollars) | Uninsured/Underinsured motorist coverage required? |
Alabama | 25/50/25 | No |
Alaska | 50/100/25 | No |
Arizona | 15/30/10 | No |
Arkansas | 25/50/25 | No |
California | 15/30/5 | No |
Colorado | 25/50/15 | No |
Connecticut | 20/40/10 | Yes |
Delaware | 15/30/10 | No |
D.C. | 25/50/10 | Yes |
Florida | 10/20/10 | No |
Georgia | 25/50/25 | No |
Hawaii | 20/40/10 | No |
Idaho | 25/50/15 | No |
Illinois | 20/40/15 | Yes |
Indiana | 25/50/10 | No |
Iowa | 20/40/15 | No |
Kansas | 25/50/10 | Yes |
Kentucky | 25/50/10 | No |
Louisiana | 10/20/10 | No |
Maine | 50/100/25 | Yes |
Maryland | 20/40/15 | Yes |
Massachusetts | 20/40/5 | Yes |
Michigan | 20/40/10 | No |
Minnesota | 30/60/10 | Yes |
Mississippi | 25/50/25 | No |
Missouri | 25/50/10 | Yes |
Montana | 25/50/10 | No |
Nebraska | 25/50/25 | No |
Nevada | 15/30/10 | No |
New Hampshire | Not required 25/50/25 | Yes |
New Jersey | 15/30/5 | Yes |
New Mexico | 25/50/10 | No |
New York | 25/50/10 | Yes |
North Carolina | 30/60/25 | Yes |
North Dakota | 25/50/25 | Yes |
Ohio | 12.5/25/7.5 | No |
Oklahoma | 25/50/25 | No |
Oregon | 25/50/10 | Yes |
Pennsylvania | 15/30/5 | No |
Rhode Island | 25/50/25 | Yes |
South Carolina | 25/50/25 | Yes |
South Dakota | 25/50/25 | Yes |
Tennessee | 25/50/10 | No |
Texas | 25/50/25 | No |
Utah | 25/65/15 | No |
Vermont | 25/50/10 | Yes |
Virginia | 25/50/20 | Yes |
Washington | 25/50/10 | No |
West Virginia | 20/40/10 | Yes |
Wisconsin | Not required 25/50/10 | Yes |
Wyoming | 25/50/20 | No |
Even though each state has minimum (or no) requirements for bodily injury liability, this is probably in your better interest to go for higher limits. If someone else is injured and you are at fault, the minimum liability coverage may not cover their medical expenses, in which case their attorney will most probably come after your assets. It is recommended to purchase 100/300 limits of bodily injury liability. While, if your personal assets don't amount too much, you do not have a whole lot for them to worry about, so the minimum requirements might actually suit you and will save you cash.
Apart from various forms of liability insurance, there is collision and comprehensive auto insurance coverage to consider. Collision covers damage to the policyholder's motor (car) resulting from running into anything, be it anything e.g. another car, a fire hydrant, or a light post. Comprehensive coverage takes care of your car from theft, fire, falling objects, explosions, or other unexpected problems.
Collision and comprehensive coverage are required in most lease contracts, and are necessary if you drive an expensive car. If you're driving an old car, on the contrary, and the value of your premium and your deductible are close to or exceed the value of your car, you might want to consider doing without this coverage.
Before purchasing any kind of auto insurance, be sure to study your other insurance policies so you don't end up paying for something you don't need. If you have a good health insurance plan, you might get away with purchasing the bare minimum PIP coverage or none at all if your state doesn't require that. However, you might end up paying a co-pay and deductible that would not apply if you have PIP or MedPay.
Uninsured or underinsured motorist coverage might also be a smart buy, even if you have full medical coverage, as it can pay for your injury and suffering damages. If u work for any organization that offers road side assistance, you don't need to purchase that yourself. The similar thing applies to mechanical breakdown insurance if you own a newly financed or leased vehicle which is still under warranty.
It is easy to be resentful of the money spent on auto insurance. Keep in mind that auto insurance will most likely come to your rescue at some point of time, so it's essential to purchase a worthwhile policy. You must know what coverage you must have and know what additional coverage fits your lifestyle. Then if in case any trouble strikes, you'll be ready for it in advance.
