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Auto insurance when
purchase is
actually several different types of individual
coverage's
contained within the
overall policy.
Each separate coverage provides insurance protection
against different types of losses.
Following is a overview of the basic insurance coverage's afforded
under a personal automobile policy.
Be Smart - Shop around for your auto insurance, even if you have a clean
driving record.
Individual Coverage's that can be bundled in a single
insurance policy.
-
Bodily Injury Liability
Insurance:
Provides coverage to another person for medical
expenses, rehabilitation and other covered costs if you and /or your family are negligent
in causing injury in a motor vehicle accident. Also, coverage applies for claims brought
against you relative to settlement of lawsuits and the costs associated for your legal
expenses.
It’s important to have enough liability insurance, if you are involved in a serious
accident, you may be sued for a large sum of money. Consider buying more than the
state-required minimum to protect assets such as your home and savings. Mandatory in most states.
-
Property
Damage Liability:
Provides coverage when you and /or other
insured in your household (or someone driving the car with your permission) are negligent
in causing damage to another persons personal property following a motor vehicle accident.
Normally, this means damage to someone else’s car, but it also includes damage to
mail boxes, sign post, telephone poles, fences, buildings or other structures your car
hit. Coverage applies for repair or actual cash value of the other party’s personal
property. Also, coverage applies for any legal expenses brought against you and /or other
insured in your household. Mandatory
in most states
- Medical / Personal
Injury Protection Benefits (PIP):
Provides coverage for medical
expenses, rehabilitation, funeral expenses, lost wages, and in-home assistance for you and
your passengers injured in a motor vehicle accident, regardless as to whom could be held
at fault in causing a vehicle accident. Passengers in your motor vehicle who may be
injured would file a PIP claim with their own respective insurance company for PIP
benefits. Mandatory
in most states
-
Uninsured / Underinsured Motorist Protection:
Provides
coverage for expenses associated with bodily injury caused by an uninsured or underinsured
motorist following an motor vehicle accident. Also, coverage applies for settlement of
lawsuits from an uninsured or underinsured motorist. Mandatory in most states
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Comprehensive:
Provides coverage for damage caused to your own vehicle resulting from something other
than a collision with another car or object, such as fire, theft, hail, flood, vandalism
or animals -dogs, birds, deer etc. Includes reimbursement if your windshield is cracked or
shattered.
Normally sold with a $100 to $500 deductible. Choosing a higher deductible will lowering
your premium. States do not require that you purchase collision or comprehensive, but if
you have a car loan, your lender may insist you carry it until your loan is paid off.
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Collision:
Provides coverage for damage to your car resulting from a collision with
another car, object or rollover. Collision coverage will have a deductible of $250 and up
the higher your deductible, the lower your premium. Even if you are at fault for the
accident, your collision coverage will reimburse you for the costs of repairing your car,
minus the deductible. Your lender may insist you carry it until your loan is paid
off.
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