Types Of Auto Insurance

Insurance Blog

The types of auto insurance options vary from state to state, but all have the same types of coverage. The main groups include liability, collision, comprehensive, personal injury protection, auto medical payments, and underinsured/uninsured motorist coverage. Additional options include guaranteed auto protection, personal umbrella policy, rental reimbursement, emergency roadside assistance, and mechanical breakdown insurance.

Type #1: Liability is offered if you cause an accident and includes bodily injury as well as property damage. This type will pay for the opposing party's injuries and automobile repairs. However, it doesn't pay for the driver or passengers' injuries or the damage to your vehicle.

Type #2: Collision pays to fix or replace your vehicle including damages to trees or other objects. For example, if you run off the road and damage someone's fence or shrubs, they will be paid. In most states, this type is required if you are leasing or have a loan on the vehicle. Most likely, this coverage can't be purchased unless you also have comprehensive coverage.

Type #3: Comprehensive protects your automobile for damage not caused by a 'moving' accident. For example damages from a natural disaster or a tree falling on the vehicle will be covered. This optional coverage is usually purchased in a combined package with collision coverage.

Type #4: Personal Injury Protection (PIP) covers personal injury protection regardless of who is at fault. It is also referred to as a 'no-fault' insurance plan. The coverage includes all drivers listed on the insurance policy as well as the household members and passengers. This type covers lost income, child care if needed, and funeral expenses. It covers bills not generally covered by health insurance policies.

Type #5: Underinsured or uninsured motorist protection can help with expenses when a motorist is not insured. If a driver has liability insurance but some states, only require a low minimum coverage. It may not be enough to pay for the expenses resulting from an accident. It is usually a good idea to add the additional protection to your car's insurance policy.

For example, if another party is legally responsible for damages to your automobile or other related expenses, you may not receive enough money to cover the damages to your vehicle if they exceed the other party's coverage amount.

These are just some of the types of insurance coverage explained in detail. Many other options are available for additional premiums. You should make the choices according to your budget and the individual circumstances involved in your driving needs. Contact a local company, like Montana First Insurance Inc., for more help.

Share

5 April 2016

Understanding Insurance Policies

When I got married, I knew that there were a few things that I needed to learn about the way the world worked. For starters, I had to figure out how insurance worked since I wanted to make the most of my life without worrying about money. I started focusing on the policies that I had in place and gradually moved towards acquiring new life insurance and the like. Having each of these coverages helped give both me and my spouse peace of mind. We both knew if something happened to me that the other would be okay. Check out this blog to learn more about insurance needs.