As most people know an auto insurance cover the damages done to the driver and the car in the event of an accident. It also covers the medical expenses and damage to other cars coming out of such accidents. It is also a legal obligation to have auto insurance. In the following paragraphs we will talk about different type of insurance cover available for car owners in the US.
Liability insurance
A minimum level of liability insurance cover is required by the state because it pays for the damage you do to others and their property. It also pays the legal expenses arriving out of an accident. The bodily-injury liability covers medical bills of others involved in the accident and property-damage liability compensate or repair the damages you caused to others’ property. This cover will also pay in case of a victim going to the court claiming damage for “pain and suffering” within your liability limits.
Auto Collision and comprehensive coverage
Collision insurance cover the expenses occurred for repairing your vehicle in case of accident. If the cost of repair exceeds the value of car it will be declared ‘totaled’ by the insurance company and sent for salvage. The insured owner will be compensated by the company with an amount equal to the cash value of the car.
On the other hand a comprehensive insurance cover pays for damages occurred to you by mishaps other than car accidents. The others cover incidents like natural calamities, hitting an animal, fire, theft and vandalism.
Medical payments and Personal Injury Protection (PIP)
Medical payments coverage or MedPay as it is called covers medical expenses occurred in treating the insured person and the co-passenger involved in the accident. Under this scheme an insured person is covered even if he is driving someone else’ vehicle.PIP or Personal Injury Protection covers the medical expenses, wages lost by you and the co-passenger injured in the accident
Uninsured Motorists (UM) and Underinsured Motorists (UIM) coverage
The Uninsured Motorists (UM) coverage pays your medical expenses if hit by a car driven by an uninsured driver or you get involved in a hit and run case. Where as the Underinsured Motorists coverage steps in when the person caused injury does not have sufficient insurance to boot your medical expenses.
There are other insurance covers called the ‘extras’ that may save lots of money though your premium bill will be shooting up. To know more about all these insurance covers contact the local insurance agent who will provide you detailed information.
