Minggu, 03 April 2016

Fundamentals of Personal Auto Insurance

Personal auto insurance helps you drive peacefully and protects you from the financial loss in case of an accident. It is an agreement between the insurance company and the insurer who pays the premium for the future losses as per the policy. Personal auto insurance provides property, medical, and liability insurance.
Property coverage pays for the damage or theft of your car, medical covers the costs of treating injuries. While, liability coverage pays for the bodily injury or property damage. The main purpose of the insurance policy covering loss of an accident whether or not caused by you.
Why Do You Need Personal Auto Insurance?
Issuance of personal auto insurance is mandatory in almost every State. If drivers do not have this type of policy they are liable to pay fines. This policy saves you from getting bankrupt and minimizes the risk of losses.
Fundamental Coverage by Personal Auto Insurance
Personal auto insurance mainly covers six basic coverages areas.
1. Bodily Injury Liability
This type of coverage applies when you or the designated driver injures someone else. It is necessary to have enough liability coverage in this case because the severity of the accident may vary. You should consider more than the minimum requirement for this type of insurance.
2. Property Damage Liability
This liability grants coverage for the damage caused to someone else's property by you or your designated driver. The property can include cars, lamp posts, fences, buildings, billboards, or any structures your car hits.
3. Personal Injury Protection
This type of coverage aids you with the treatment of injuries to the designated drivers or passengers. It covers the medical costs, lost wages and even funeral costs.
4. Collision
This coverage pays for the damages caused to your car with the collision of another car, or any other object. It could also include any potholes or anything on the road. This type of coverage is usually sold with a deductible under the range of $250 - $1000. The premium depends upon the deductible. The higher the deductible, the lower the premium.
5. Uninsured Coverage
This type of liability coverage will compensate you or your designated driver if they get hit by an uninsured or hit-and-run driver.
6. Comprehensive
This type of coverage reimburses you for losses because of theft, damage or anything that is other than collision with a car or object which may include, fire, earthquake, missiles, hail, flood, or animals on road. This is also sold with a deductible. You can keep your deductible high to lower your premium.