An auto insurance policy is an agreement between individuals and the insurer for automobiles. The insured person pays a certain premium as insurance and the insurance company, in turn, promises to support financial losses involving vehicles as long as the policy lasts.
Auto insurance is compulsory in most states. There are different types of benefits or coverage.
Some of the components of auto insurance are bodily injury liability, property damage liability, medical payments coverage, uninsured or underinsured motorist coverage, comprehensive coverage, and collision coverage. A typical policy features the aforementioned six benefits.
Bodily injury liability covers legal fees and personal injury claims filed against you if someone is killed or harmed in your auto and you are found to be responsible. Property damage liability deals with legal bills and other damage claims, in case there is harm to another person's property by means of your car.
Medical payment coverage helps pay medical costs, even if the insured person is hurt in somebody else's automobile. Uninsured or underinsured auto coverage protects against costs incurred as a result of an accident that is caused by another individual who is either uninsured or does not have enough insurance.
In comprehensive coverage, insurance is for vehicles that are damaged because of theft or natural calamities. Here, the insurance amount is paid for repair or replacement of vehicles.
Collision coverage is for autos in which damage occurred to a collision with another car, object or even a person.
Auto insurance policies allow premium discounts for theft devices or for owning more than one policy with the same insurer. An added advantage is the provision for extending coverage to others driving your car with your permission.
Auto insurance is compulsory in most states. There are different types of benefits or coverage.
Some of the components of auto insurance are bodily injury liability, property damage liability, medical payments coverage, uninsured or underinsured motorist coverage, comprehensive coverage, and collision coverage. A typical policy features the aforementioned six benefits.
Bodily injury liability covers legal fees and personal injury claims filed against you if someone is killed or harmed in your auto and you are found to be responsible. Property damage liability deals with legal bills and other damage claims, in case there is harm to another person's property by means of your car.
Medical payment coverage helps pay medical costs, even if the insured person is hurt in somebody else's automobile. Uninsured or underinsured auto coverage protects against costs incurred as a result of an accident that is caused by another individual who is either uninsured or does not have enough insurance.
In comprehensive coverage, insurance is for vehicles that are damaged because of theft or natural calamities. Here, the insurance amount is paid for repair or replacement of vehicles.
Collision coverage is for autos in which damage occurred to a collision with another car, object or even a person.
Auto insurance policies allow premium discounts for theft devices or for owning more than one policy with the same insurer. An added advantage is the provision for extending coverage to others driving your car with your permission.
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