Posted by admin on August 3, 2010
Out of all the insurances, auto insurance is the most popular and frequently bought insurance in the US. The number of cars on the road is more than the number of people and as per some state laws, it is a must to have car insurance. Since there is such a huge demand in the insurance, it is always necessary to be informed about the various aspects of motor vehicle insurance. There are six different kinds of car insurance policies.
Bodily Injury Liability – This is an insurance policy that covers drivers of another car. If your car has met with an accident and the driver of the other car is seriously hurt, then the medical costs will be covered by bodily injury liability. It is quite beneficial for the policy holder because he does not have to worry about being sued.
The Medical Payments or Personal Injury Protection insurance coverage – This kind of insurance is similar to bodily Injury liability. The difference is that in this kind of insurance, the policy holder and associated passengers are covered in this case of an accident. They are entitled to have their medical bills, loss of wages and even death is covered.
Under Property Damage Liability car insurance policy – Under this policy, the insurance company will bear the cost of the damage of the other car after it met with an accident. The policy holder will have to bear the cost of the damages of his car from his own pocket.
The Collision Insurance policy – This is the most common and cheapest insurance available. Here the insurance company will pay for the damages or repairs on your car if it is hit by the other car. In this policy, the driver needs to pay a certain amount towards the deductible and the rest will be paid by the insurance company.
Comprehensive coverage – This is another popular policy for motor vehicle owners. Under this policy, the car is covered from a wide array of things. Your car will get the cover from fire, theft, acts of god and collision with other vehicles. The policy holders need to pay a certain amount of monthly deductible and the rest will be borne by the insurance company.
Uninsured and Undersigned Motorist Coverage – This insurance will be helpful in the event when someone with no insurance crashes into you. The insurance company will cover the costs of the damage sustained by the driver. In case of a hit and run, the policy holder will be insured.
In analyzing each policy we get to see what each one has to offer. In doing so it allows the potential purchaser of insurance to have the best information available for making the choice on their auto.