Top Ad unit 728 × 90

 

Understanding the Basics of Auto Insurance Coverages




All 50 states have different laws when it comes to auto insurance policies and coverages.  However, the basic coverage options are pretty much the same across the states and even insurance companies.  The following descriptions are general information regarding each coverage options.

Auto Liability Coverage

Auto liability insurance coverage pays for the damage if you are legally responsible for accidentally injuring someone, or for damaging another vehicle or other property in an auto accident.

Auto liability coverage falls into two categories:

Bodily Injury Liability - which covers medical expenses, pain and suffering, lost wages, and other special damages.

Property Damage Liability -- which covers damaged property, and may include loss of use.
Liability car insurance also pays legal defense and court costs.
State laws usually dictate the minimum amounts of auto liability insurance required, but higher amounts are available.

Personal Injury Protection (PIP)

This auto insurance coverage pays the reasonable and necessary medical expenses for covered persons for treatment due to an auto accident.

It may also pay for:
Rehabilitation
Lost earnings
Replacement of services (For example, child care if a parent is disabled.)
Funeral expenses

Medical Payments
This auto insurance coverage is available in most states. It pays reasonable and necessary medical and funeral expenses for covered persons when those expenses are related to an auto accident.

Collision
This auto insurance coverage helps pay for damage to a covered vehicle caused by:
Collision with another vehicle
Collision with an object
A vehicle rollover
A deductible is required.

Comprehensive Insurance

This auto insurance coverage helps pay for loss of or damage to an insured vehicle, not caused by a collision or vehicle rollover.

Examples of this type of damage or loss include:
Fire
Wind
Hail
Flood
Vandalism
Theft
Hitting an animal
A deductible may apply.

Uninsured Motorist

This auto insurance coverage pays for damages when a covered person is injured in an auto accident caused by a driver who does not have Liability Insurance
In some states this auto insurance coverage may also pay for property damage.
This type of car insurance coverage varies by state and depends upon policy provisions.

Underinsured Motorist

This auto insurance coverage pays for damages when a covered person is injured in an auto accident caused by another driver who has insufficient Liability Insurance.
Application of this type of auto insurance varies by state and depends upon policy provisions.

Rental Reimbursement

This coverage pays for renting a car when your auto is disabled due to an auto accident.
Daily allowances or limits vary by state or auto insurance policy provisions.

Emergency Road Service

This auto insurance coverage pays for having your auto towed due to a breakdown.
Towing limits vary by state or policy provisions.
This information is only a general description of the available types of auto insurance and is not a statement of contract. All auto insurance coverages are subject to all policy provisions and applicable endorsements.

GAP Insurance

When you buy a car, it loses value as soon as it's driven off the dealer's lot. Unless you put a substantial amount down, the car will be worth less than you still owe on it. If you happen to get in an accident where the car is totaled, or it is stolen, before you make up the difference, the insurance company will only pay what the car is actually worth, not what you owe on it. In order to make sure you're able to pay off the loan, you may want to consider taking out GAP coverage--it will cover the 'gap' between what you owe and what the car is actually worth.

Understanding the Basics of Auto Insurance Coverages Reviewed by Blogs on 7:57 PM Rating: 5

No comments:

All Rights Reserved by Commuter Online © 2014 - 2015

Contact Form

Name

Email *

Message *

Powered by Blogger.