Car Insurance Coverages - What Are They?
There are different types of auto insurance coverage available for your protection. Here are the most common types that an auto insurance company may provide.
Liability Cover - Liability coverage is the minimum auto insurance covered required by law in most states. It is intended to cover the victims of an auto accident that is deemed to have been caused by you. Your own bodily injuries or property damage is not usually covered by liability insurance.
Comprehensive Cover. Auto insurance comprehensive coverage covers damages to your car that are not caused by other motorists, including fire, theft, vandalism and storms.
Collision Coverage - With collision coverage, your auto insurance company pays for damage to your car if it is involved in a collision with another vehicle or with a stationery object, no matter who is at fault.
Uninsured/Underinsured Cover - Uninsured driver coverage covers your medical expenses and those of your passengers (and in some states property damage as well), in an accident caused by a hit-and-run driver, a driver with inadequate insurance, or a driver with no insurance at all.
GAP Cover - When you buy a new car or even a fairly new used car, it's vale will depreciate by at least 20% when you drive it off the lot. So, on a $30,000 car your auto insurance company will only pay out $24,000 at the most in the event of it being stolen or totalled, yet you will still have to pay off the $30,000 loan. If you have GAP cover than you will be able to recover the $6,000 difference.
Personal Injury Protection (No Fault). This form of cover is only required in "no-fault" states but is optional in others and covers injuries to yourself and others in your vehicle regardless of fault.
Pay-Per-Mile - A fairly new type of coverage is Pay-Per-Mile. It is so new that it is currently available only in a few states. Basically you pay auto insurance based on the usage of your car. The less you drive, the less you pay. The downside is that in order to benefit, you have to allow your auto insurance company to put some form of tracking device in your car.
In the end, getting the best premium and coverage that fits your budget is a balancing act. - 21396
Liability Cover - Liability coverage is the minimum auto insurance covered required by law in most states. It is intended to cover the victims of an auto accident that is deemed to have been caused by you. Your own bodily injuries or property damage is not usually covered by liability insurance.
Comprehensive Cover. Auto insurance comprehensive coverage covers damages to your car that are not caused by other motorists, including fire, theft, vandalism and storms.
Collision Coverage - With collision coverage, your auto insurance company pays for damage to your car if it is involved in a collision with another vehicle or with a stationery object, no matter who is at fault.
Uninsured/Underinsured Cover - Uninsured driver coverage covers your medical expenses and those of your passengers (and in some states property damage as well), in an accident caused by a hit-and-run driver, a driver with inadequate insurance, or a driver with no insurance at all.
GAP Cover - When you buy a new car or even a fairly new used car, it's vale will depreciate by at least 20% when you drive it off the lot. So, on a $30,000 car your auto insurance company will only pay out $24,000 at the most in the event of it being stolen or totalled, yet you will still have to pay off the $30,000 loan. If you have GAP cover than you will be able to recover the $6,000 difference.
Personal Injury Protection (No Fault). This form of cover is only required in "no-fault" states but is optional in others and covers injuries to yourself and others in your vehicle regardless of fault.
Pay-Per-Mile - A fairly new type of coverage is Pay-Per-Mile. It is so new that it is currently available only in a few states. Basically you pay auto insurance based on the usage of your car. The less you drive, the less you pay. The downside is that in order to benefit, you have to allow your auto insurance company to put some form of tracking device in your car.
In the end, getting the best premium and coverage that fits your budget is a balancing act. - 21396
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posted by X - Men @ 4:46 AM
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