Types of Mandatory Auto Insurance Policies


 Mandatory Auto Insurance PoliciesAre you searching for auto insurance policies? Then please take one minute breath to know the types of policies and coverage. There are four mandatory auto insurance policies including Personal Protection Insurance (PIP), Liability for bodily Injury, Property Protection Insurance (PPI) and Property Damage Liability. However make sure that should be widest (comprehensive) protection for the common events.


There are other various types of insurance policies for your auto cars that may protect you and your vehicle as well as coverage liability. Among many automobile insurance policies, you have to choose one of the best options suitable for you. There are other types of automobile insurance like, property damage liability, collision coverage, liability coverage, comprehensive coverage, personal injury protection, gap insurance, rental car insurance, bodily injured liability, pay-per-mile coverage, uninsured coverage and under-insured driver coverage.

You have to understand that there are some mandatory options for auto insurance and some others are optional policies, which may increase your insurance premium. You may be in doubt that which options are best but you have to do first mandatory and then choose other optional policies as per your requirement and situation.
You may know that how to lower your car insurance premium? Be sure that you are going to choose a best automobile insurance and reduce insurance policies.

Mandatory Auto Insurance Policies:

Personal Protection Insurance (PIP): It is the key of No-fault coverage and pays your wages loss, medical expenses and other related expenses and damaged in an auto related accident. There is no limitation for minimum policy.

Property Protection Insurance (PPI): It helps to covers property damage to buildings and other non-vehicular property. It does not help to coverage for damaged of parked cars. The mandatory minimum policy limit is not necessary for PPI. Its protection coverage is limited to $1 million.

Liability for Bodily Injury: It helps to coverage in the accident occurred bodily injured or death. It is really helpful in injury to another party and it coverage liability. However, it's not for your injuries coverage - just for another party’s injury coverage. The minimum policy limit of liability for bodily injury is $20,000 per person and $40,000 per accident. It is really expensive policies because of the medical expenses, however helps to coverage the medical expenses, rehabilitation or physical therapy, legal representation for the other party, wages loss (work time lost due to injury) and funeral costs etc.

Property Damage Liability: PDL provides coverage property damage, including destruction of property of others and injury while the insured is at fault in accident. The minimum PDL limit is $10,000 is mandatory. This policy does not help to coverage damage your own property, it’s for third party’s property damage insurance. It is really helpful insurance policy to coverage financial risk because of that you don’t know, how much liability should pay while found at fault for damage to third party's property.

Other Optional Auto insurance Policies:

  • Comprehensive policies
  • Collision Coverage policy
  • Physical damage coverage policy
  • Rental Car insurance policy
  • Uninsured Driver Coverage Policy
  • Fire and Theft coverage policy
  • Pay-per mile coverage policy



You have to do all mandatory insurance for your automobiles and choose any optional coverage for your financial protection as well as physical protection. Some factors are under your control but mandatory options cannot controllable.
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