Car insurance information
If one owns the car it is legal necessity to have the car insurance. And if someone is involved in an accident or have got their car stolen, owning the right kind of auto insurance can help to ease a difficult situation . Car insurance protects the insurer against financial loss if one has met with an accident. It is a contract between insurer and the insurance company. The customer agrees to pay the premium and the insurance company in turn agrees to pay the losses as defined in the policy .
The car insurance provides the coverage for property, liability and medical in which property coverage pays for damage caused to or theft of the insurer ?s car, liability coverage pays for insurer?s legal responsibility towards others for bodily injury or property damage and medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses .
The basic car insurance policies are comprised of six coverage ?s, each of which is priced separately. The coverage?s varies from company to company and state to state . The following are basic coverage?s:
1. Bodily injury liability: This coverage pays to injuries that, the insured driver or policyholder, caused to someone else . The insurer and his family members are listed on the policy are also covered when driving someone else ?s car with their permission. Its very important to have enough liability insurance, because if insurer is involved in a serious accident, he may be sued for a large sum of money . Definitely one should buy for more than the state-required minimum to protect assets such as one?s home and savings.
2. Medical payments or personal injury protection: This coverage pays the reasonable and necessary medical expenses of policy holder for the treatment due to an accident . It may also include rehabilitation, lost earnings, replacement of services like, child care if a parent is disabled and funeral expenses .
3. Property damage liability: This coverage pays for the damaged caused by the policy holder or by someone else driving the car with his permission to some else?s property. Generally the damage to property means damage to someone elses vehicle, lamp posts, telephone poles, buildings and other structures hit by policy holder ?s vehicle.
4. Collision: This coverage pays for damage to policy holders car resulting from a collision with another car, object or as a result of roll over . It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $250 to $1,000 ?the higher your deductible, the lower your premium. In case of accident the policy will cover for damage cost to the vehicle minus the deductible .
5. Comprehensive: This coverage helps to pay for the loss of or damage occurred to an insured vehicle, not caused by a collision or vehicle rollover. The loss and damages covered in this are due to : fire, wind, hail, flood, vandalism, theft and hitting an animal .
6. Uninsured and underinsured Motorist coverage: This coverage pays for damages occurred to a covered person who is injured in an auto accident caused by a driver who does not have Liability Insurance. In some states this coverage may also pay for property damage . This coverage varies from state to state and depends upon provisions under policy . This coverage helps pay for loss of or damage to an insured vehicle, not caused by a collision or vehicle rollover.
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