Wyoming Auto Insurance Basics
Auto insurance coverage is the same in every state. What is different is what each state considers mandatory coverage for its drivers. The levels also vary and while the state sets the levels for the coverage that it requires, you can choose any level of coverage you wish as long as you meet the minimum for your state.
This mandatory coverage is only a part of the automobile insurance that is available to protect you and your family as well as others on the road. Your deductibles and the level of coverage you choose will all have a bearing on the premiums you will pay for your automobile insurance.
Automobile insurance consists of six major areas of liability: Bodily Injury, Property Damage, Personal Injury Protection, Collision, Comprehensive, Uninsured Motorist, and Underinsured Motorist coverage.
It is usually the insurance commissioner of each state who decides what coverage you must have to drive in that state as well as the levels of coverage you must carry. Some states allow you to ensure your financial responsibility through other means other than through automobile insurance and Wyoming is one of them. Instead of purchasing car insurance you can secure a bond with a surety company or deposit money or securities with the state treasurer.
As these levels are usually at the low end, you may want to consider additional coverage as well as higher levels of automobile insurance. The minimum levels that are mandated by each state represent the highest amount of money that your insurance carrier will pay for medical and property damages per accident.
Bodily injury liability will cover medical bills and loss of wages for the person whose car you hit. It does not cover your injuries. That is where Personal Injury coverage comes in. It will cover your medical bills as well as any family members who were in the accident with you. Your Property Damage coverage will pay for the repair or replacement of property that was damaged or destroyed because of an accident where you were at fault.
You must carry collision insurance on your automobile if you financed the vehicle and still owe money on it. The lender will not let you cancel this coverage as it is a protection of their investment. If your lender finds out that you let the collision coverage lapse they will find a carrier for you and will add the price of the extra coverage to your car payment every month. And you can be sure they will not shop around for the best rate.
Comprehensive coverage is there to protect the value of your vehicle and pay for damages that have been caused by anything other than an accident- weather damage such as flooding, if someone were to break into your car, and also if it were stolen.
Some states have no-fault laws in place but in most cases Uninsured Motorist coverage and Underinsured Motorist coverage is not mandatory. In fact in some states you must check and initial that you are rejecting either of those forms of coverage.
The Uninsured Motorist liability will cover you if your vehicle is hit by someone who has no insurance coverage at all while Underinsured coverage will protect you if you were hit by a driver who didn’t have enough coverage to pay for your expenses. It will also cover you if you were subject to a hit and run accident.
If you aren’t sure exactly what you need to properly cover yourself and your family members, talk to an insurance professional and he or she will guide you through it.