You know what you're getting when you pay your mortgage and utility bills each month. That's true if your coverage limits are adequate to pay medical bills and repair costs in the event of a crash. However, if your limits are inade-quate you could pay even more out of your pocket. The purpose of auto insurance is to pay for repairing cars and mending people when they are involved in an accident. By investing a little time to better understand your insurance policy, you can lower your insurance premiums, while increasing your coverage.
Liability coverage includes both bodily injury and property damage.
Bodily injury liability protects you against financial loss because of an injury you may cause some-one else, while property damage liability protects you for damage you may cause to the property of others. For example, if you hit another vehicle and the driver suffered a broken leg, bodily injury covers' the other driver's medical and rehabilitation expenses, and property damage covers damage to the vehicle. Even though auto insurance is mandatory in Arizona, experts say 39 to 51 percent of drivers are not insured. Underinsured motorist coverage fills the gap when someone doesn't have enough insurance to pay your medical bills. Uninsured coverage protects you in the event the other party doesn't have any insurance.