Types of Auto Insurance Coverage

When shopping for car insurance, it is always a great idea to be informed and to know what you are looking for. One thing you will need to know is the various kinds of auto insurance coverage readily available to you.

TYPES OF AUTO INSURANCE :

1. LIABILITY AUTO INSURANCE

In this type of policy, once you clash with another and it is proven that it is your fault, then you get to pay the costs done due to the injury of the other driver. This includes the damages done on the third party too. Most of the time, this is what is required among government employees. These bodily injuries necessarily include medical bills.

2. COMPREHENSIVE AUTO INSURANCE

It includes a wide variety of advantages. Incidents like windshield replacement, storms, hitting an animal, vandalism and theft are only a few of the situations in which this policy covers. On the other hand, Collision Auto Insurance refers to the impact done by the third party in your car or vehicle. The amount that will be given to you is the deductible you have stated plus the actual cash value of your vehicle. There are two basic components of liability car insurance:

• BODILY INJURY LIABILITY COVERAGE

Bodily injury liability coverage may help to pay costs if people are injured or killed in a covered accident you cause. This may include medical expenses and loss of income.

• PROPERTY DAMAGE LIABILITY COVERAGE

Property damage liability insurance helps pay for damage done to someone’s property as the result of a covered accident for which you are responsible. It may help cover the expense of repairing or replacing a car, fence or other property damaged during the covered incident.

3. INSURED AND UNINSURED COVERAGE

Insured and Uninsured Coverage is commonly known as Uninsured and Underinsured Coverage. This type of coverage is beneficial if you met with an accident which is caused by an uninsured driver. The damages caused to your car will be repaid by your insurance carrier. This policy also covers damages caused to the car if it is a hit-and-run case.

4. PROPERTY DAMAGE LIABILITY

This type of insurance covers costs incurred to you through accident. The plan reimburses for damaged caused to someone else’s property, on your behalf. It does not consider who was driving the car unless the driver has asked your permission.

5. BODILY INJURY COVERAGE

Bodily injury insurance policy pays for the injuries caused to the other person by the insurance holder or other individuals mentioned in the policy. The policy covers the cost even if you were driving a borrowed car, after obtaining permission.

6. PERSONAL INJURY PROTECTION

Personal injury protection plan is different from other plans as it guarantees treatment in case any of your fellow passengers or you are seriously injured due to an accident in your car. There is a PIP which also pays for post-treatment expenses such as rehabilitation, missed wages as well as even for funerals.

7. COMPREHENSIVE COVERAGE INSURANCE SCHEME

Comprehensive coverage is one of the highly opted insurance coverage policies, as this policy covers a wide range of adverse events. Apart from an accident caused by a collision between your vehicle and someone else’s vehicle, the policy covers almost all types of risks. To name a few, natural calamities such as flood, earthquake, and hurricane etc. collision with animal and other types of damages are covered under this policy.

8. COLLISION COVERAGE

Collision coverage involves any type of damages which is a result of an accident due to collision with another car or object. If the uninsured is considered in fault then the company will pay the cost for the caused damages and subtract the deductible.

9. AUTO LIABILITY COVERAGE

Auto liability insurance coverage is a legal requirement for driving a car. Yet the most basic policy may not provide the coverage you need if you’re in a serious accident. It pays to understand liability car insurance and adjust your policy to meet your needs and budget.

10. MEDICAL COVERAGE

This type of coverage is essential because it pays for accidental injuries to the insured’s and passengers in the occurrence of an accident. It is a beneficial coverage and should not be justify out.

11. GAP COVERAGE

GAP Coverage Auto Insurance is also called Guaranteed Asset Protection or Guaranteed Auto Protection. This type of insurance plan coverage will pay for the conflict between the balance owed on the loan, vehicle, or lease, and the real cash value of the car or truck. This protection is generally used upon the purchase of used and new cars and trucks. In most cases, your lease contract or loan company will demand it. GAP covers the amount of the loan, which is the difference between the value of the vehicle and the amount that another insurance policy covers.

12. RENTAL REIMBURSEMENT COVERAGE

This is an optional coverage that helps you pay to rent a car if your own car is in the shop for repairs from a covered loss. This type of coverage is for car rentals and it is highly recommended by many insurance agents. Usually, clients will have the chance to purchase this coverage for only $20 per year. It is also essential for consumers to understand the restrictions of this coverage. Although some insurance providers will pay for the rental car directly, rather than having the consumer pay for it, this is not the way it is for all insurance companies. Many insurance companies will reimburse the client for the costs of the rental vehicle.

13. TOWING AND ROADSIDE ASSISTANCE

It is essential to have insurance and road-side assistance for your car. Insurance and roadside assistance does not cost much but it does provide plenty of peace of mind. It is not until you break down that you know how much you really do need insurance and roadside assistance.

14. NO-FAULT AUTO INSURANCE

No-fault auto insurance is an insurance coverage which performs under the rule that no single driver was at fault in a car accident. Therefore no fault is determined in a car accident and each injured party will file a claim with their own respective auto insurance company for damages. For instance, if Mark and Jones were involved in a car accident, Mark will file a claim with his insurance company and Jones will file a claim with hers irrespective of who was at fault because there was no one at fault. This type of insurance is for everybody that own or drive a car.

15. PAY-AS-YOU-DRIVE AUTO INSURANCE

Pay-As-You-Drive Auto Insurance is insurance that charges drivers for only the amount of miles they drive. An insurance company will charge drivers a per mile rate. A small discreet unit is installed in the vehicle that will record the number of miles the vehicle is driven. The data gathered is sent to the insurance company. They record the details and bill the driver for the number of miles driven. If you are a driver that only uses the car for short trips such as going to work and back or doing errands, you will save a significant amount of money for purchasing this type of coverage insurance.

16. SR-22 FILING

An SR-22 is basically a form that your insurance company files with your state’s motor vehicle department, certifying that you carry at least the minimum amounts of coverage required by your state. Some insurance companies give these filings at no extra cost, while others impose a nominal charge for this service. Usually, the filing will only add $10 or $20 to the initial cost of your policy. However, if you are expected by your state to carry SR-22 insurance, it is not optional. If you choose not to maintain SR-22 insurance coverage for the required period of time, you will lose your driver’s license and could end up paying any fines. Some people think they can just purchase SR-22 insurance for a limited time to get their driver’s license reinstated and then cancel later on without the state finding out.

17. DUI/DWI

Driving under the Influence (DUI) or Driving While Intoxicated (DWI) are interchangeable terms that typically mean drunk driving. It is viewed as a criminal offense if the person registers a Blood Alcohol Content (BAC) that is over the state limit. Many people feel that after a DUI, they can’t get coverage of that their coverage will cost a fortune. This is not necessarily true. The fact is, there are companies that work with DUI offenders. These companies are polite and understanding and they work to get you the best rates. You are entitled to coverage just like anyone else. Of course, nobody is above mistakes. Yours shouldn’t haunt you the rest of your life. Getting cheap DUI insurance is not easy but it is possible. Using online search engines is your best solution for finding cheap car insurance for DUI offenders. Start by searching online using your zip code.