Our this article is very helpful for knowing about auto insurance. If you wants know about auto insurance then read our this post and get free information.

Auto Insurance:

Before getting auto insurance, it is very important for us to know what is auto insurance. It protects us from financial loss when there is an accident with us. This is a contract between us and the insurance company in which we pay the premium and the insurance company pays the loss to us if we happen to have an accident. Auto insurance provides property, liability and medical coverage:

Now  we explain these three types of coverages:

  1. Property coverage: Property coverage pays the damage to our car as it is damaged or stolen.
  2. Liability coverage: Due to our loss of any kind of physical injury or association to our cause, we can avoid losses by paying liability coverage.
  3. Medical coverage: We save our expenses by paying medical coverage for the expenses of injuries, rehabilitation, funeral etc.

An auto insurance policy is comprised of six different kinds of coverage. But we do not have to buy all. Most of the majority of auto policies last for six months to a year. And when it comes time to pay our premium, our insurance company informs us by mail.

Here’s some other types of required and unrequired coverage also available.

Now we explain these types:

Mandatory Coverage: All vehicle owners need different types of auto liability coverage as given below:

  • Bodily Injury Liability: When we or some other driver is driving and then if someone gets hurt by our car or dies, then this coverage protects us from that loss by paying it.

What It Covers
This is not only for travelers, but also for pedestrians. Some examples below that cover bodily injury insurance.

Medical Expenses: It covers hospital expenses.

Legal Fees: Anyone with the accident can file a lawsuit against us. It often pays the loss by paying a legal defense fee.

Loss of Income: 

 

  • Property Damage Liability: When our vehicle damages the vehicle or property of another, then this coverage protects us from paying the loss.

Frequently Required Coverage

In many states we require the following coverage:

  • Personal Injury Protection (PIP): In case of an accident with our vehicle, this coverage pays medical expenses for injuries to us or our passengers, it also includes other related expenses.
  • Uninsured Motorist Coverage: When we have an accident like an uninsured driver then we can buy underwear motorized coverage and By paying the costs of a serious accident, we can save it from paying it.

Note: If these coverage is optional in your state, then add them to your policy as much as possible.

Optional Coverage

In case of accident with our vehicle, legally mandated auto insurance pays other vehicles to the cost of damage, does not cover the damage to our vehicle. To cover this, you need to purchase the following optional auto insurance coverages:

  • Collision Coverage: This alternative coverage pays the damage to our vehicle by colliding with another vehicle such as a tree or guardrail. Whenever our vehicle gets damaged by falling into the pit or in any tree, then the Collision Coverage covers our vehicle.
  • Comprehensive Coverage: This coverage covers the damage to our vehicle due to theft or any other reason such as due to fire, flood, vandalism, hail, trees and any other hazards caused due to occurrence.