Basic Auto Insurance Coverage Policies

Check the following basic auto insurance coverage policies explained. And do not forget to get a car insurance quote online whenever you want or need to scan the market for better rates:

 

  1. get a car insurance quote onlineCollision – Damage sustained in a collision with another vehicle or a stationary object is covered under this policy. New cars replacement coverage should be also purchased for vehicles that are financed under an outstanding loan because most lenders require the insured to cover the loss risk.
  2. Comprehensive – If the car is stolen or sustains damage from falling debris, fire, or any natural extreme phenomena, this component of the insurance policy would pay the repair or replacement costs. When you rent a car, this component covers the rental car throughout the duration of your rental period. Collision and comprehensive coverage require a deductible before reimbursing the policyholder.
  3. Liability – Every state requires that every licensed automobile is covered by the minimum amount of liability coverage. Some agents recommend substantially higher liability rates to cover the possibility of lawsuits that exceed minimum state liability amounts. Liability coverage is split into two major categories – property damage and bodily injury.
  4. Property – Any property damage to public or private property that belongs to another party will be covered by the liability component. Your personal property is not covered under the liability coverage.
  5. Bodily Injury – When other people are injured in a collision with your vehicle, their medical expenses are covered by this sub-component of the liability coverage.
  6. Medical – This auto insurance policy would cover the medical expenses sustained by you and your immediate family in the event of an automobile accident. If other health insurance coverage exists, this coverage may not be necessary.
  7. Uninsured/Underinsured – Even though every driver is required by law to carry insurance, there are still many drivers that do not have any insurance or do not carry enough insurance. This UM/UIM component will cover your expenses in the event an uninsured driver is at fault in the accident. If a hit-and-run driver hits your car, or you, this portion of the policy will cover your expenses.

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