Auto Insurance Cover - The Facts
There are different types of auto insurance coverage available for your protection. Here are the most common types that an auto insurance company may provide.
Liability Cover. Liability coverage pays others for damages resulting from a car accident that you cause. It also pays for a lawyer to defend you if you are sued for damages.
Comprehensive Coverage - Comprehensive cover requires your auto insurance company to pay for damage to your car caused by something other than an auto accident such as fire, theft or vandalism. This sort of coverage is subject to a deductible. If you decide upon a $100 deductible, then you pay the first $100 and the company pays the rest up to the policy limit. Sometime this cover is combined with collision protection that covers you for damages sustained in a car accident.
Collision Coverage - Collision coverage, as it's name suggests, covers damages to your car due to collision with other vehicles, stationery objects and any road obstructions.
Uninsured/Underinsured Cover. Uninsured and underinsured driver coverage protects you when the negligent driver has no auto insurance or insufficient insurance. In most sates this only covers bodily injury, and not property damage.
GAP Cover - When you buy a new car or even a fairly new used car, it's vale will depreciate by at least 20% when you drive it off the lot. So, on a $30,000 car your auto insurance company will only pay out $24,000 at the most in the event of it being stolen or totalled, yet you will still have to pay off the $30,000 loan. If you have GAP cover than you will be able to recover the $6,000 difference.
PIP Personal Injury Protection - PIP (also known as no-fault), covers medical and funeral expenses and lost wages of the driver and passengers in the insured vehicle no matter who caused the accident.
Pay-Per-Mile - Pay-Per-Mile insurance is a novel approach to possibly saving money on car insurance. With this type of insurance the price of your premium would be directly linked to the number of miles you drive. The fewer the miles, the lower the costs would be. This sounds promising, but it does suffer from two major drawbacks. Firstly it is available in very few states (around 12 at the time of writing) and secondly it involves the insurance company fitting a tracking device to your car.
Auto insurance policies are usually a combination of coverages. For example comprehensive and collision cover are quite often combined under the title "full coverage". Whatever the terminology, it is always best to seek further advice before purchasing your policy. - 21393
Liability Cover. Liability coverage pays others for damages resulting from a car accident that you cause. It also pays for a lawyer to defend you if you are sued for damages.
Comprehensive Coverage - Comprehensive cover requires your auto insurance company to pay for damage to your car caused by something other than an auto accident such as fire, theft or vandalism. This sort of coverage is subject to a deductible. If you decide upon a $100 deductible, then you pay the first $100 and the company pays the rest up to the policy limit. Sometime this cover is combined with collision protection that covers you for damages sustained in a car accident.
Collision Coverage - Collision coverage, as it's name suggests, covers damages to your car due to collision with other vehicles, stationery objects and any road obstructions.
Uninsured/Underinsured Cover. Uninsured and underinsured driver coverage protects you when the negligent driver has no auto insurance or insufficient insurance. In most sates this only covers bodily injury, and not property damage.
GAP Cover - When you buy a new car or even a fairly new used car, it's vale will depreciate by at least 20% when you drive it off the lot. So, on a $30,000 car your auto insurance company will only pay out $24,000 at the most in the event of it being stolen or totalled, yet you will still have to pay off the $30,000 loan. If you have GAP cover than you will be able to recover the $6,000 difference.
PIP Personal Injury Protection - PIP (also known as no-fault), covers medical and funeral expenses and lost wages of the driver and passengers in the insured vehicle no matter who caused the accident.
Pay-Per-Mile - Pay-Per-Mile insurance is a novel approach to possibly saving money on car insurance. With this type of insurance the price of your premium would be directly linked to the number of miles you drive. The fewer the miles, the lower the costs would be. This sounds promising, but it does suffer from two major drawbacks. Firstly it is available in very few states (around 12 at the time of writing) and secondly it involves the insurance company fitting a tracking device to your car.
Auto insurance policies are usually a combination of coverages. For example comprehensive and collision cover are quite often combined under the title "full coverage". Whatever the terminology, it is always best to seek further advice before purchasing your policy. - 21393
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