Auto insurance is the foundation of a potent pecuniary plan, and is the key to protect yourself from financial losses resulting from an accident, in exchange for your payment of a premium.
1. Auto Insurance & its Five Coverage Types
Travelling or commuting by car is not always safe as accidents and mishaps can
occur anytime –any day –even when you are careful and aware enough; especially
in United States –a car accident happens every 18 seconds. Hence, there is a need
to safeguard your life with Car insurance.
Auto insurance is the foundation of a potent pecuniary plan, and is the key to
protect yourself from financial losses resulting from an accident, in exchange for
your payment of a premium. Generally, car insurance policies include several
types of coverage for different situations and catastrophes, all of which may be
priced differently. Here are mentioned as well as discussed five types of auto
insurance coverage:
Bodily Injury Liability
This auto insurance coverage type protects you for pain and injury, medical
bills, lost wages, and also for funeral expenses –for those who got injured in
an accident where you were legally responsible. Moreover, in certain cases
where you want to defend yourself in a covered lawsuit, this coverage can
pay for the legal and court costs. This type of coverage is required in most
states.
2. Collision
The principle / concept of collision coverage is easy and understandable.
This type of coverage reimburses for any sort of damage to your car which
was the result of a collision with another vehicle. Not only when you are
the victim, but also when you are legally responsible for the accident –this
type of coverage will pay for the cost of fixing your car. Collision coverage
would be required especially when your automobile is financed.
Property Damage Liability
Property damage coverage allows you the sigh of relief when you caused an
accident –as this type of coverage pays for the repairs to another person’s
vehicle or property loss. Beyond bearing the cost to repair the other
person’s car, Property damage liability also covers repair costs of anything
you damage with your car, such as a fence, street lamp, or building etc.
Comprehensive Coverage
Comprehensive coverage pays for losses due to hazards and calamities
only. This may encompass the damages that are caused by the theft,
vandalism, fires, earthquakes and storms etc.. This coverage type is
optional in all states.
Uninsured and Underinsured Motorist Coverage
With Uninsured and Underinsured Motorist Coverage Policy –you along
with all other passengers present in your vehicle (who got injured in an
accident) would be protected if the accident is caused by an uninsured
motorist who legally responsible for your injuries. This policy pays for the
medical expenses too.
3. All sorts of insurance policies are protection; but when it comes to auto insurance
which is also known as car insurance or vehicle insurance, it becomes more
requisite and extremely essential –this is because in today’s scenario we spent
certain part of the time in cars and vehicles –for instance, in the morning and
evening, and whenever we have to go out from our edifices.
So, choose a reputable auto policy service such as Online Auto Insurance, Illinois
–to lead a safe life, and safeguard yourself from fiscal loss or property loss caused
by an accident, hazard, court issue or vehicle vandalism etc.