You may aware that in most parts of the world and in most states too, driving a car is illegal without proper insurance. So, you must have an automobile insurance if you are a car owner. Over the years I?ve been witnessing practical experiences that the automobile owners often use to repent of not choosing a proper auto insurance.Choosing a right kind of car insurance may not be any driver?s first priority, the first one logically being the safety of their owners often pay the price after an accident wiped the peace and tranquility out of their life.
Car or auto insurance is a contract between you and your insurance company where you agree to pay the premium, while the insurance company agrees to reimburse your loss under terms and conditions against property, liability and medical coverages as stated in your insurance policy. Property coverage pays for damage to and/or theft of the car. Liability coverage pays for policy-holder?s legal responsibility to others for bodily injury or property damage. Medical coverage pays for cost treating, rehabilitation and sometimes lost wages and funeral expenses. The insurance policy provides different kinds of inbuilt and additional coverages. So, you have to choose a right kind of policy after researching a little bit, using online auto insurance quotes of different car insurance companies which serves you the best according to your needs.
Bodily Injury Liability coverage is applicable where injuries are caused to someone in a road accident by the policyholder or his family members listed on the policy. If you are involved in a serious accident and are sued for a large sums of money, you will have to choose good liability insurance for your protection.
Medical Payments or Personal Injury Protection(PIP) coverage pays for injuries to the policyholder and occupants inside the car in an accident. PIP can cover medical payments, lost wages and cost of replacing services normally performed by someone injured in an auto accident. It may include funeral cost, if any.
Property Damage Liability pays for damage you can cause to another car. It can also include damage to other objects of property your car might hit, for instance fences, telephone booths, lamp posts, building or other structures.
Collision Coverages pays for damage to the policyholder?s car, called it own damage, which resulted from a collision with another car, object etc. It should be noted that due to certain operative clauses, even if you are to blame for or at fault for the collision, the costs of repairing of your car will be reimbursed to you by insurance company. But the deductible has to born by the policy-holder which generally ranges from $250-$1000 in U.S. Comprehensive Coverage will pay you for the loss (other than collision with another car) due to damage by fire, explosion, falling objects, missiles, earthquake, windstorm, hail , flood , vandalism and riots, contact with animals, theft etc. In other words, comprehensive coverage assure reimbursement for damages caused by forces other than another car or object.
Uninsured and Under-insured Motorist Coverage reimburses you in case you are hit by an uninsured or hit-and-run driver and will also be helpful if you are hit as a pedestrian.