Today we’ll wrap up our discussion of the various kinds of automobile insurance with some of the more important remaining types of optional coverage: PIP / Med-Pay, Comprehensive / Collision, and GAP.
Personal Injury Protection (known as “PIP”) or Med-Pay coverage are two similar types of coverage. Sometimes these are called “no-fault insurance.” This is because they pay whether or not you contributed to the accident or were placed at fault. They provide coverage for medical bills and other related expenses incurred by you or your passengers when you are in an accident.
In South Carolina, the coverage is called PIP. In some other states, like Georgia and North Carolina, it is called Med-Pay. Be sure that you collect this coverage whenever you were in a wreck that resulted in collision. If you have it, you pay for it and your insurer owes it to you. We can help you with that process.
Collision and Comprehensive coverage are also close cousins. They are both optional, but sometimes a lender will require them to protect its collateral. Collision coverage comes into play when your car collides with another object, like a tree or parked car. It will pay to have your car repaired or totaled out. Comprehensive coverage pays to repair or replace your car when it is damaged by something other than a collision, like a flood, storm, falling tree limb, or vandalism.
One final important type of insurance coverage is Guaranteed Asset Protection coverage (called “GAP”). GAP protects you when a financed vehicle is declared a total loss. Remember that liability coverage will pay the market or “book” value of a totaled car.
Sometimes this amount is less than the current loan balance, leaving you stuck with a car payment for a car you no longer own. That’s where GAP coverage can step in and pay off the loan balance. This is especially important on newly purchased cars or on cars purchased with little money down.
Next time we’ll begin discussing some of the things that insurance can do for you when you’ve been in a wreck. Remember that the attorneys at McWhirter, Bellinger, & Associates stand by ready to help when you’ve been injured.