The types of Auto Insurance are given as follows.
Liability Insurance
If you are found legally liable to pay for someone else's
injuries or loss due to an accident, then liability Insurance safeguards you or
another driver insured under your policy.
Liability Insurance is one of the most important coverage
you can buy due to the protection offered by it to you and your personal
assets.
For a single injured person, the maximum amount of coverage available is
equivalent to the lower "per person" limit. In the case when more
than one person is injured in the same accident, the higher "per
accident" limit is the maximum total amount of coverage.
Liability Insurance will pay damages for bodily injury and
property damage. Bodily injury is broadly defined to include the sickness,
injury, or death of another person, and typically includes economic and wage
loss as well, provided such losses arise out of a bodily injury.
Property
damage covers financial losses arising from the damage, destruction, or loss of
use of another person's property.
Single Limit Policy
You should buy the highest liability insurance for your own
protection that you can afford. It's important since these limits will also find
out the amount of underinsured motorist coverage available to you. You should
buy the highest coverage per person you can finance and that coverage amount is
the same coverage as per accident. This is known as a single limit policy.
Personal Injury Protection (PIP)
PIP coverage provides for payment of medical expenses, wage
loss benefits, burial expenses, and other services such as home nursing care
and domestic help during recovery from an injury. PIP benefits are limited by a
maximum dollar amount and for a specific period of time, whichever comes first.
Even though, it is not essential to purchase PIP coverage,
it is recommended that you do so, and that you buy the maximum available amount.
Irrespective of the person who caused the accident, Personal
Injury Protection (PIP) pays for medical expenses and wage loss for you and other
passengers in your car. In addition to that, PIP also covers pedestrians and bicyclists
who are along with you and are injured in an accident.
According to the State law, PIP coverage be offered and that
it meet certain minimum requirements.
Insurance companies also are obligated to offer higher PIP
coverage-at an additional cost-for payment of medical expenses, and for loss of
services up to one year from the date of the accident.
Many insurance companies are becoming more and more
aggressive in restricting payments for treatment they consider
"unreasonable" or "unnecessary" irrespective of the trend
toward making PIP coverage more accessible.
For example, when chiropractic care
is involved, insurers are increasingly likely to attempt to cut off PIP
payments before one year. If your insurance company attempts to restrict your
PIP coverage following an accident, you may require talking with a lawyer.
Underinsured Motorist Coverage (UIM)
Underinsured Motorist Coverage (UIM) covers you, members of
your household, and other people traveling in your car against damage caused due
to an uninsured or underinsured motorists.
While you are a pedestrian or riding
a bicycle, this coverage also extends to you or members of your household who
may be injured by an uninsured/underinsured motorist.
In spite of the fact that auto insurance is compulsory, many
people drive without any coverage or without sufficient coverage to reimburse
an injured person fully.
It's essential for you to have your own UIM in the case if
you experience an injury or loss caused by a driver who is uninsured or underinsured.
The significance of the Underinsured Motorist Coverage is due to the fact that the
law requires insurance companies to offer it to all customers. Unless you make
a written request for less coverage, the amount of UIM coverage offered must be
the same amount as your liability coverage.
If you want to cut costs on your policy, you should never
waive this coverage or reduce it below your liability coverage. Instead, consider
paying higher deductibles or even reducing collision or comprehensive coverage.
Today, too many uninsured or underinsured motorists are simply there on the
road. In case of your vehicle damaged by an uninsured or underinsured motorist,
you may also buy UIM property damage to pay for damage to your vehicle.
Beyond
the value of your vehicle, you will not require coverage limits. Because both
cover damage to your vehicle, this coverage overlaps with collision coverage,
but for the deductibles, there may be different amounts.
Collision Coverage
Irrespective of who may be at fault, collision coverage pays
for damage to your vehicle from an accident or collision. Subject to a
deductible, Collision coverage pays for repair or replacement of a vehicle, up
to the fair market value of the vehicle.
By means of choosing a higher
deductible amount, you can reduce the cost of this coverage. On older vehicles,
which have minimal values, your cost can also be reduced by not carrying
collision coverage.
Comprehensive (or "Other than Collision") Coverage
This coverage protects your vehicle from the damage caused due
to the following.
- Fire
- Theft
- Vandalism
- Weather
- Glass
breakage, and
- Contact
with an animal.
Note, however, that this coverage usually does not cover
such items as:
- Cassette
tapes,
- CDs,
- Tape
decks or car phones.
These items can be added by specific endorsement.
Other insurance options
By means of towing and car rental, other coverage is typically offered. These
services are usually worthwhile for a small additional cost.
Related Articles:
|
