How Does AICRA Work?
AICRA works as follows:
When you buy insurance you are offered a standard or a basic policy.
The basic policy provides minimal coverage and leaves you with little protection in areas such as personal liability (when you injure someone else), property damage or medical expense benefits.
Moreover, the basic policy does not provide any uninsured motorist coverage to protect you and your family if the careless driver who causes the accident is uninsured or is insured under a Basic Policy with no bodily injury liability coverage.
In short, the basic policy does not provide adequate protection for your assets if you are sued and it does not give you or your family member adequate coverage if you are injured by a careless driver.
The standard policy, on the other hand, provides liability coverage if someone makes a claim against you for injuries and property damage.
The standard policy also provides uninsured motorist coverage if you or resident family member is injured by a careless driver who is uninsured or has no bodily injury coverage such as in the basic policy.
The standard policy also provides medical expenses coverage in case you are injured in an accident.
Therefore, the standard policy provides the best insurance coverage to protect your assets if you are sued and provide compensation to you and your family if you are injured.
This is how AICRA works in a nutshell.