Car and vehicle insurance cover.
Car insurance (comprehensive insurance) is an agreement between you and
your insurance company where you arrange to pay a premium in an exchange
for the peace of mind that your insurance agency will pay for vehicle
related financial losses during the duration of the policy. You need auto
insurance because you are liable by law to pay for losses you cause to
others in the event of an automobile accident.
| Purchasing auto insurance
is the surest way to guarantee you will be able to fulfill your
end of the bargain. In some states it is required that you have
minimum forms of insurance in order to drive. You also must have
insurance in order to finance a car.
One of the first questions you will be asked when obtaining motor
vehicle insurance is how much of the covered loss or deductible
do you want to be your responsibility? You may choose between
$100, $250, $500, or $1,000. The higher your deductible the lower
your premium however you must keep in mind that the deductible
is the amount you must pay before your insurance will assist you.
If you cannot afford to pay the first $1,000 of the covered loss
you may want to consider how much you can afford and choose a
lower deductible.
Your insurance coverage is broken down into each purpose you
would need to be covered for. One of the most common coverages
include liability which pays out when the insured driver is legally
responsible for bodily injuries and property damage they cause
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Bodily injury damages cover medical expenses, pain and suffering,
lost wages and other special damages. Property damage includes damaged
property and loss of use. Liability also pays legal defense expenses.
Each state has a set minimum amount of coverage you must carry but you
may opt for higher amounts.
Personal injury protection pays medical expenses for covered individuals
despite who is at fault for the accident. It also covers rehab, lost
wages, replacement of services and funeral expenses. Medical payment
coverage pays medical and funeral expenses regardless of fault when
the causes of these requirements are due to an automobile accident.
Collision coverage pays for damage to an insured vehicle caused by collision
with another vehicle or object. Your deductible will apply to collision
coverage.
Comprehensive coverage pays for loss of or damage to an insured vehicle
unless is damaged or lost as the result of a collision. Comprehensive
would cover losses due to theft, fire, wind, hail, flood, vandalism
or impact with an animal. Your deductible will apply to comprehensive
coverage.
Uninsured motorist pays for loss or damage caused by another driver
who does not have liability insurance. Underinsured motorist coverage
pays when the insured driver is injured in an automobile accident caused
by a driver who has an inadequate amount of liability insurance. Rental
reimbursement pays rental vehicle costs when your vehicle is put out
of commission as the result of an automobile accident. Daily monetary
limits may apply. Emergency roadside assistance coverage pays towing
expenses when your vehicle breaks down. Distance limits may apply. Your
policy will generally cover you, your spouse children and other family
members who reside in your residence as well as anyone else who has
permission to drive your covered automobile.
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