Car insurance is a tricky subject. There are so many things to reflect. There are many types of coverage to view at that must be understood before making a policy occupy. The following will define the different types of auto insurance that are available and what would be the best policy to fit your needs.
Auto insurance is meant to prevent you from financial ruin in the event of an accident. It protects you if you and your property are injured and it will protect you if you injure someone else and their property. It is not a guarantee against a lawsuit. It is not a green light to drive recklessly.
Price-The heed for your policy is based on a number of factors.
• Age, sex, marital status, location, type of vehicle and age of vehicle and amount of driving time all calculate into the cost of the plan.
• The number of coverage plans selected for the policy.
• The coverage amounts and deductibles chosen.
Bodily injury liability coverage- This coverage pays for injuries or death that result from an accident in which you are at fault.
• Often this coverage will be combined with Property damage liability coverage.
• When purchasing this coverage you will select a dollar amount of coverage. This is the maximum amount that will be paid for injuries.
• Anything that is not paid for by the insurance becomes the at fault party’s responsibility to win care of.
• Many states require this coverage.
• This is the basic minimum requirement. States will mandate the dollar amount of coverage you have to have.
Property distress liability coverage- This coverage pays for damages that result from an accident in which are at fault and have damaged another person’s property.
• Often this coverage will be combined with Bodily injury liability coverage.
• When purchasing this coverage you will select a dollar amount of coverage. This is the maximum amount that will be paid for harm.
• Anything that is not paid for by the insurance becomes the at fault party’s responsibility to steal care of.
• Many states require this type of coverage.
• This is the basic minimum requirement. States will mandate the dollar amount of coverage you have to have.
Medical Payments, no-fault or personal injury coverage- This coverage pays for medical expenses of the driver and passengers in your vehicle in the event of an accident regardless of who is at fault.
• When purchasing this coverage you will select a dollar amount of coverage.
• It is sometimes combined with Uninsured Motorist Coverage.
• This coverage will pay for the injuries of your drivers and yourself.
• Any injury expense that is not covered by this insurance will become the party’s at fault responsibility.
Uninsured Motorist Coverage- This type of coverage pays for your injuries and some property in specific circumstances after being in an accident with an uninsured driver or involved in a hit-and-run driver.
• When purchasing this coverage you will select a dollar amount of coverage.
• It is sometimes combined with Medical Payments, no-fault or personal injury coverage.
• This coverage will pay for the injuries of your drivers and yourself.
• Any injury expense that is not covered by this insurance will become the party’s at fault responsibility.
Underinsured Motorist Coverage- This type of coverage pays for your injuries and some property in specific circumstances after being in an accident in which the driver at fault’s insurance is insufficient to cover the cost of the damages.
Comprehensive coverage- This type of coverage pays for damage to your car or property in the event of theft, vandalism, flood, fire, hail, and other types of things.
• For this type of coverage you select a deductible. This deductible is the amount that you will pay prior to the insurance paying for damages.
• This coverage is specific for acts of theft, vandalism and naturally caused damage to your car such as caused by wind, water, hail, etc.
• This coverage will add cost to your policy. However if your vehicle is stolen or vandalized or damaged from a weather related event it will really pay for itself.
Collision Coverage- This type of coverage pays for damage to your vehicle in the event of an accident or collision regardless of fault.
• You will choose a deductible. This is the amount of money you will pay prior to the insurance company paying.
• This insurance will pay whether the accident was against a pole or was a five car pileup.
• This insurance plan will add cost to your policy but it will guarantee that your car is repaired regardless of who is at fault.
PIP-Personal Injury Protection-This type of coverage pays for the insured driver’s medical expenses regardless of fault so long as the injuries are related to an auto accident.
• This insurance ensures that the injured party gets the medical attention needed and the bills are paid timely regardless of fault.
Rental Reimbursement- This type of coverage will pay for a rental car in the event that the insured’s car is damaged due to an accident. There is likely a daily allowance for a rental car.
• This is old-fashioned when your vehicle is in the shop for repairs or if your vehicle is totaled. A rental will be given to you for a certain amount of days or up to a certain dollar amount. This will protect you from being stranded without a vehicle because of a collision.
Resources
http://www.geico.com/information/aboutinsurance/auto/
http://auto.progressive.com/progressive-car-insurance/auto-coverages.aspx
http://auto.howstuffworks.com/car-insurance.htm
