AUTO INSURANCE ARTICLE
Understanding Your Auto Insurance Coverage
By: james_writerLooking for the cheapest car insurance is already a very difficult task. For you to be able to find the most affordable one, it is quite important to understand the coverage that will be included in your auto insurance policy. If you understand what’s on your auto insurance quotes it will be easy for you to determine what you need and what you don’t and cut down the cost of your auto insurance premiums. Thus, you will be able to save a lot of money.
It is also helpful to know what kinds of coverage you have in case of an accident so you know when to file claims.
Here are some of the major categories of auto insurance and some tips about it:
Liability Insurance. This is also often called bodily injury insurance, which reimburses the other driver for damages sustained in an accident when you are at fault. Liability insurance covers expenses incurred for bodily injury, property damages and pain-and-suffering damages—although auto insurance company sets a maximum amount of money that they will pay. For example, if you crash into your neighbor’s fence or to another car, your car insurance company will pay for the damages. Almost every state requires minimum liability coverage except Tennessee, Wisconsin, and New Hampshire. Whether it’s required or not, make sure you always have this to avoid hassle during and accident.
No-fault Insurance. This covers for damages or injuries by either party in an accident regardless of who is responsible. It is also important to have this insurance coverage because it will pay for your immediate medical expenses while the insurance companies figure out who caused the accident.
Collision Insurance. Collision insurance coverage pays for medical expenses and property damages you sustained when you are at fault.
Comprehensive Insurance. This auto insurance coverage pays for loss or theft incurred in an accident other than collision. It would also cover property damages caused by natural events such as flood, fire, hail or vandalism. You most likely won’t need this and it may be worth thinking it over before including this in your policy. Except maybe if you see your car catching fire anytime soon.
Personal Injury Protection Insurance. This insurance is very similar to medical payments coverage and it pays medical expenses incurred in an accident. It also covers expenses for hit-and-run accident and a will give a death benefit in the unlikely event of death. Personal insurance protection also pays for lost wages and other expenses related to the accident. Some states require this coverage while some only offer this as an optional coverage. This insurance may be very important as well so you might want to include this in your policy.
Underinsured or Uninsured Motorist Insurance. This kind of insurance will cover your expenses if the other driver does not have insurance or if he/she doesn’t have adequate insurance. This would only normally cover medical expenses and pain-and-suffering costs. If you always have funds for your medical expenses this may be worth rethinking as it may only increase your auto insurance premiums.