Reader’s Question:

What kind of coverage could I get from an auto insurance company? I will be buying myself a car and I want to get more information about car insurance, thanks!

Irvine

Honolulu, HI

There is no doubt that auto insurance coverage is a necessity when owning and driving a vehicle. You will find that an auto insurance company will sell you a lot of options when it comes to car insurance and most first-time buyers are overwhelmed by terminologies and jargons that agents or brokers typically use. So here are a few things you should know about auto insurance:

An auto insurance policy aims to protect you in any kind of car accident scenario there in Hawaii, hence it consist of the following:

1. Liability Auto Insurance – undoubtedly one of the most important forms of auto insurance coverage. This protects you from having to pay huge amounts of money in the event you are sued for damages and injuries in a car accident that may have been your fault. Most states have financial responsibility laws that set a minimum limit on how much you should purchase, for Hawaii this is pegged at 20/40/10.

2. Personal Injury Protection – also known as Med Pay, this pays for medical or hospitalization and treatment of your injuries in a car accident.

3. Collision Insurance Coverage- provides settlement if your car is totaled in a car accident or pays for repairs to restore your vehicle to its original insured value.

4. Comprehensive – Covers you from loss of your vehicle due to other causes not related to a car accident, such as loss due to fire, theft or natural disasters.