Most automobile liability policies contain three major parts: liability for bodily injury (commonly called BI), liability for property damage (PD) and uninsured/underinsured motorists coverage (usually referred to as UM/UIM).
Bodily
injury coverage pays for injury to other persons for which you are legally
responsible because you were at fault in an accident in which they were hurt.
The insurance protects you against their claims for such things as medical
expenses, lost wages and pain and suffering. While it does NOT pay for injuries
for you or anyone else driving your car, it does pay if the accident was caused
by a member of your family residing with you or a person using your car with
your consent. It will also protect you and members of your family if driving
someone else’s car with their consent, should their insurance not be in force,
or in case damages exceed the amount available under the owner’s policy
.
In you must carry
minimum limits of bodily injury liability - $25,000 per person and $50,000 per
accident. This means you have coverage up to $25,000 for damages incurred by
any one person and up to $50,000 in any one accident should more than one
person be involved. You many elect to purchase higher limits, based on your
wish to protect your assets from lawsuits above these minimum amounts. Keep in
mind that as you raise your coverage, your premiums increase because you are
asking the insurance company to assume responsibility for higher amount, should
a claim occur.
Property Damage
liability coverage pays for damage to property for which you are legally
responsible for in the case of an at-fault accident. Property of others usually
involves damage to another car, but it also could be a telephone pole, lawns,
fence, or even a building. This coverage pays not only when you are driving but
when others are driving with your permission. The minimum limit required in
Rhode Island for property damage is $25,000 per accident. Again, a higher limit
is available for additional premium.
Uninsured
Motorists coverage protects you. It pays if you are injured by a hit-and-run
driver or a driver who does not have auto insurance. This coverage, in effect,
takes the place of what the other driver should have purchased but did not.
Coverage is also provided for under-insured drivers – those who have insurance,
but not enough to cover your claim. This coverage, too, has policy limits. It
covers bodily injury and property damage (property damage is subject to a
deductible of $200). After payment to you for damages, your insurance company
may sue the other driver for the money paid to you because of the other
driver’s negligence.
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