What is Auto Insurance?
Vehicle or automobile insurance is the insurance pertaining to cars, trucks and other vehicles whose sole purpose is to provide financial protection against accidents which lead to physical injuries, property damage and thefts. It provides a financial backup to the owner in order to get back his vehicle and meet his injuries caused as a result of accidents incurred. One has to note the types of insurances available that can suffice his/her loss. Now let us take a look at the common six types of vehicular insurances.
Basically, this insurance covers two type of losses namely physical injury and personal property. This totally covers medical expenses, personal injuries and property damages. Most states will have minimum requirement for the amount of liability insurance. A person is recommended to have insurance above state’s minimum liability coverage as it will provide extra protection making him/her safe at all possible conditions. Moreover, it ensures the well-being of both the owner and the vehicle.
This insurance acts as a savior in conditions where a car hits another car, an animal, a Lamppost etc. It is recommended to insure the vehicle in this type of insurance to safeguard the vehicle during precarious moments. In case if your car meets with an accident and the value of it exceeds the actual value, the total value is paid off. Moreover, if your car is older it’s not worth to have yours insured and on the other hand if it is a relatively new car, then getting it insured is the wisest thing.
This type is generally called as “Other than collision” or “Fire and theft” insurance. It includes vandalism, riots, floods, hailstorm, fire, animal collisions etc. Comprehensive coverage provides a leverage to its customers by fostering them at unavoidable circumstances whereas the liability and collision covers only accidental coverage. It is really wise to have this type of coverage if it fits in one’s budget so as to meet crisis. This coverage includes fittings such as anti-theft alarms and tracking devices. In case the vehicle is easily replaceable, then it is not advisable to use this coverage. If the vehicle has a lienholder, then the coverage is required for both collision and comprehensive coverage.
Medical payments include the coverage of all the costs that pertain to medical expenses as a result of any physical injury to the driver and the passenger. One can claim the expenses by providing the necessary evidences like hospital bills, pharmacy bills, FIR Report etc. The extent of coverage differs from person to person and seriousness of the injuries.
Personal injury protection (PIP)
Out of all the insurances, Personal Insurance Protection is the most vital one as it covers one’s life. It’s just the extension of medical payments. It covers a wide range of expenses such as medical rehabilitation expenses, work loss, funeral costs and replacement services. It also covers the medical expenses of both the driver and the passengers, irrespective of whose fault that is, in case of an accident. One has to note that this type of insurance covers is not available universally.
Uninsured/Underinsured Motorist protection
Even though state claims to have all the cars to be insured, that is not always the case. Another instance would be where a driver may have liability insurance, some states have relatively minimum coverage that may not be enough to cover all of the expenses of an accident. Even if someone is legally responsible for the accident, you may not be able to receive payment if the other person does not have any or less coverage to the damage done. This is where the uninsured/under insured motorist protection will help with expenses.