Before purchasing auto insurance, it’s important to know what kind of auto insurance system your state follows– No-Fault or Fault (Tort). Understanding this will help you decide how much coverage you will need if you are ever involved in an accident.
In most states, the driver who is at fault for an accident is responsible for paying the costs of damages and injuries to the other driver. This is where Liability coverage comes in. Bodily Injury will pay for their medical costs and Property Damage pays for any damages sustained to their vehicle. In those states, your policy will only cover your own medical and property damage costs if you purchase Medical Payments and Collision coverages, respectively.
If you live in Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, or Utah, your state operates as a no-fault state. In these states, drivers will purchase Personal Injury Protection (PIP) coverage, which covers the costs of injuries regardless of who is at fault. Depending on which state you live in and what level of coverage you elect, PIP may also cover the passengers in your vehicle.
Having a basic understanding of the auto insurance system in your state is a good place to start. We understand that the coverage options and laws can be intimidating and our agents are here to help. If you have any questions at all, please contact your local Acceptance Insurance agent and let our team help you find the coverage that best fits your needs.