In a society where cars play the key role in our transportation needs, and where careless, unsafe or downright dangerous driving has flourished as much as the car numbers, automobile insurance is as indispensable as the cars themselves.
Auto insurance is sometimes a real bother for most car owners starting from the obligation to make it and ending with the so many types of coverage that exist, plus they’re seemingly unreasonable prices. But if we take the time to read a few things about the subject, we can find that it’s really a simple matter.
Different Types of Coverage
Automobile insurance offers many types of coverage. First of all, there is a bodily injury liability – which covers any accidents which have resulted in the loss of lives or the injuring of others; it also provides legal defense in the case of a lawsuit filed by another party that has been involved in the accident.
Medical payments, no-fault or personal injury protection coverage is made so that it could cover any medical expenses for the driver or passengers of a vehicle. The uninsured motorist coverage is probably the most important to have because it covers against accidents with drivers that have no insurance of their own and that will not be able to pay for the damages to your vehicle; also useful if a hit-and-run driver has been involved.
There’s a comprehensive physical damage coverage – which insures your automobile against damage provoked by fire, floods, probably earthquakes too and animals or in the case it has been stolen. The collision coverage is another type of coverage that is most used among drivers because it provides assurance in case of simple traffic accidents that implies the hitting of or being hit by other vehicles. And we know these happen on a daily basis, especially because we’re trying to avoid other drivers that never seem to have the patience to wait for the green light. This is a tricky one because it is usually limited to the value of the car – so in case you have grandma’s car, you’d better forget about this insurance type, it’s mostly useless.
Property damage liability is a better version of the collision coverage – it covers the case when your vehicle damages another party’s property plus any lawsuits that could result due to the collision. And the rental reimbursement coverage is used to pay for a rental car if your own cannot be used because it has been taken out of commission on the count of any other vehicular incidents (and your car is covered under collision or physical damage coverage).
These types of auto insurance coverage vary from state to state or differ according to the company that does the insuring. They’re all important of course, but you should only get the ones that are really useful to you so you won’t spend a lot of money that goes out the window. There are those drivers that choose not to get any of the former mentioned and only the minimum coverage that the state requires – just to avoid paying anything that they don’t have to. Auto insurance is imperative, yes, but it’s best to drive safe!