Auto Insurance

Financial loss during an accident can be avoided by taking an auto insurance. If you pay the premium the insurance company will protect you from losses as mentioned in the policy. The coverage provided by auto insurance are property, liability and medical expenses: · Any damage to your car (or theft) will be covered by the policy as damage to property · Liability coverage will help you if you are legally responsible for someone else's bodily injury or property damage · Medical expenses pay for treatment of injury, rehabilitation and in some cases loss of wages and funeral expenses. Most auto policies are taken out for a time period ranging from six months to a year. Insurance companies will intimate by mail when it is time to renew the policy and pay the premium. Basic Auto Policy Auto policies include six sections. Each section (coverage) is exclusively priced.

Bodily Injury Liability Injuries caused by you, the appointed driver or the policyholder to someone else are covered by this. The policyholder and his family members listed on the policy are covered even when they drive someone else's car with their consent. It is important o have enough liability insurance because if involved in a serious accident, you may be sued for a huge sum of money.

Personal Injury Protection (PIP) Treatment of the injuries to the driver and passengers of the policyholder's cars is paid for under this coverage. PIP can also be used to compensate for lost wages and the cost of replacing the services of a person injured in an auto accident. It can also cover funeral costs.

Property Damage Liability This coverage can be used to pay for the damage caused by your car (driven by you or someone else with your permission). Usually this is for the damage to someone's else's car and also includes damage to fences, buildings, telephone poles and other structures that your car may have hit.

Collision Damage to you car caused by a collision with an object, another car or because of flipping over is covered here. Damage caused by potholes also falls under this coverage. Collision coverage can be bought for a deductible of $250 to $1000 - the greater the deductible, the lesser is the premium. Even if the fault of the accident lies with you, the coverage reimburses the cost of the repairs (minus deductible). In such cases, the insurance company will try to recover the costs from the other person's insurance company. If successful, you will be reimbursed for the deductible.

Comprehensive This covers loss for other reasons like theft, or damage caused buy fire, earthquake, tornadoes, hailstorm, flood, vandals, riots or falling objects. The deductible for comprehensive insurance is usually between $100 and $300. You do have the option of a higher deductible to be able to lower the premium. Cracking or breaking of the windshield will also be covered by the Comprehensive insurance. Some companies offer coverage without deductible in this case.

Uninsured or Underinsured Motorist Coverage If you or anybody in your family is hurt because of an uninsured driver or a hit-and-run driver, they will be reimbursed under this coverage. Even if an underinsured driver causes you harm (while driving or as a pedestrian), you will be reimbursed under this coverage.