Different states have different requirements as to what kind of insurance a driver should have at the very minimum. Most states just require basic coverage, which includes bodily injury liability and property damage liability. However, this type of coverage only protects you financially from any injury, death, or damage you may cause to other people or their property. You yourself are not covered by liability insurance.
If you want to make sure that you will be covered in case of an accident, what you need is First Party Benefits coverage. In the United States, only the state of Pennsylvania requires First Party Benefits coverage. In all the other states, this is optional. The basic coverage of First Party Benefits is limited to the medical expenses of the policyholder and other people listed in the policy. This is termed First Party Benefits-Medical.
In case of a really serious accident, however, the First Party Benefits-Medical plan may not be enough to cover the expenses incurred. That is why there is the option of taking out First Party Benefits-Extraordinary Benefits from your car insurance company. In the state of Pennsylvania, this coverage is an optional add-on. That is, if you have taken out First Party Benefits-Medical, you can choose to extend that to First Party Benefits-Extraordinary Medical.
Your First Party Benefits-Medical should have a cap of $100,000. The Extraordinary Medical coverage is then designed to take care of any medical expenses that would exceed the $100,000 limit of the basic First Party Benefits-Medical coverage. The main policyholder, together with members of his household listed in the policy, is covered by this. You can define the limit for your Extraordinary Medical cover, up to a maximum of 1 million dollars.
In a nutshell, Extraordinary Medical benefits coverage is your insurance against an accident of a catastrophic nature that causes major medical needs.
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