Why is extended coverage important?


Knowing why the insurance premium is high can help in reducing the premium rates, when it comes to paying for auto insurance. Auto insurance can be customized according to every individual’s needs. Choosing the right policy which has extended coverage more than what is basic requirement is necessary for the safety on the road.

The basic insurance is the liability insurance which ensures that the other driver involved in the collision has coverage for automobile damages. It does not however protect the policy holder against any automobile damages. If the driver is at fault and does not have a third party liability insurance, then it affects the other party involved in the accident since third party insurance cannot be claimed. Also, the court may order the person without liability insurance to cover for personal and automobile damages to the party involved in the accident. It is therefore very important to have liability insurance.

Collision and comprehensive insurance work best as a package, and most insurance companies give discounts if both those policies are taken together. While collision insurance covers automobile against damages from all kinds of collision, comprehensive insurance covers them against damages from natural disasters and other external sources. Both of these together provide complete protection for the vehicle under any circumstance.

Buying medical liability insurance is important to protect the other driver involved in an accident against physical injuries. Sometimes, treatment bills turn out to be really expensive and lack of medical insurance can be heavy on pocket if the policy holder is at fault. Personal Injury protection plan is something which protects the policy holder and family who are inside the car at the time of collision. Personal injury protection plan pays for all medical expenses due to treatment of injuries resulting from a collision or an accident.

Uninsured motorist insurance is perhaps the most important policy that should be included in all coverage. It is hard to be sure of other drivers on the road and bank upon their liability insurance in case of emergency. This is not the case sometimes and not all drivers carry liability insurance even though it is mandatory. Under these circumstances, uninsured motorist insurance protects the driver involved in an accident even if the other driver at fault does not carry liability insurance. Insurance companies claim the other party’s liability insurance first before releasing the claim amount for their own client. Uninsured motorist policy provides protection regardless of the driver’s fault in the accident.