Auto Insurance Basic Understanding about Coverage

September 19, 2017

Auto Insurance: Basic Understanding about Coverage

Auto Insurance: Basic Understanding about Coverage - The basic insurance was mandated by several states in US to provide several financial protections if you or another driver who use your car causes a collision that damage other vehicles, objects or injuring person. To make the best decision about why type of auto insurance that you need, you need to understand what is been covered, what is not be covered and what is the optional one. Besides you need to understand the type of coverage, you also want to consider the amounts as well. Why? Because the state required minimum does not cover for serious collision event, so you might consider purchasing higher coverage.

Auto Insurance Basic Understanding about Coverage
Auto Insurance Basic Understanding about Coverage


Several types of coverage
The Mandatory Coverage
There are several states require that the car owners should carry the following of auto liability coverage:
  • Property damage liability which pays the loss for others that had been caused by you or other drives that use your car and damage other vehicles or properties, such as: building, fence or the utility pole as well.
  • Bodily injury liability covers all of cost which related with injuries and death that had been caused by you or other persons who drove your car.
Other required coverage that had been asked frequently
There are several states require that you should carry these following coverage:
  • The uninsured motorist coverage, it pays your loss that had been caused by uninsured motorists or you are in hit-and-run case.
  • Medical payment or personal injury protection also known as PIP also pay your medical cost for your injuries or other passengers inside your car.


Optional coverage that you need to know

While the basic coverage, there are also mandated auto insurance covers that pay of damage toward other vehicles that you had been caused while driving, however it does not cover your own vehicle. In this case, you need buy these following optional coverage:
  • Collision will cover your damaged car that had been caused by the result of collision by other vehicles or object, such as: tree or guardrail, if you are in a fault. Although this coverage does not pay your normal wear and tear, however it so useful to pay your damaged car.
  • Comprehensive will provide you with coverage for your loss that had been theft and caused by other incident that a accident, such as: flood, fire, vandalism, falling rocks, tree and more.
  • The glass coverage, as we know that windshield damage was so common and there are several auto policies that provide you with the non deductible of glass coverage. It also including of sunroof glass, side windows and rear windows as well.



You should know that there are many auto insurances use different criteria when evaluate the insurance application during this process which also known as underwriting process. Each company has their own guidelines related who drivers that they want to accept and how much they will charge at that person based on the risk. Of course, different guidelines for each company as well.
Previous
Next Post »
0 Komentar