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Auto owners’ insurance and the various options available


Every motorist on the road must be insured and auto insurance should be considered an investment.  There is always a good outcome for the policy holder even in the future.  The family as a whole will benefit from the insurance, not just the policyholder.  There are various kinds of policies apart from the basic one and there are various coverage options as well.  While it is mandatory in most states, minimum insurance coverage is something that is the basic necessity.

The most important factors that one should consider while purchasing insurance is the coverage it offers as well as the deductibles.  This is the core of the insurance policy and the rest of the features will be based on this, including the premium as well.  The deductible is the amount that will be paid by the policyholder out of their pockets, in the event of an accident.  The premiums will get lower if the deductibles are higher.

There are various categories of coverage and each category has its own definition and features.

Liability coverage – this type of coverage will offer protection will cover almost everything.  The auto liability coverage will offer coverage to the driver who is at fault and the people who are injured, as well as damage caused to the property during the accident.  Bodily injury liability includes loss of wages, medical costs as well as other damages as well.  The personal damage liability will cover any other damage to property as well.

Personal injury protection – this coverage will take care of the medical costs for all the people who are injured in the accident.  It is a pre stated amount and could extend to all other medical costs that are incurred such as rehabilitation, loss of wages, funeral costs, and all the other related expenditure.

Collision coverage – this involves the deductibles (payment made by the policy holder out of his/her pocket) and the higher the deductibles, the lower will be the premiums.

Comprehensive coverage – covers all aspects except collision coverage.  It even covers damage due to the forces of nature like floods, fire, hurricanes, riots etc.

Medical payment coverage – this covers the medical costs as well as funeral expenses if any, in the event of an accident.

Uninsured motorist coverage - if an uninsured motorist causes damage and cannot afford to pay, then this insurance cover takes care of everything.

Rental reimbursement – covers cost in case of rental car.  Amounts will vary according to the policy and state laws.