Car
insurance protects you against any financial loss that may happen due
to an accident or theft of your car. It is a car insurance company
that issues car insurance to you. A car insurance company will work
up a car insurance policy for you after evaluating the various
options like the make of your car, the premium that you are willing
to pay, your insurance risk, etc. A yearly premium has to be paid by
you to the car insurance company so that the company can pay for your
loses that you may bear in the future. All the terms and conditions
are mentioned in the contract and it is your duty as a Car owner to
look over all the points and ask the insurance agent any questions
that you have in mind. It is only after all the terms and conditions
are clear to you that you should sign on the dotted line and pay the
premium.
Normally
all car insurance companies have the same insurance policies. The
premium to be paid and the percentage of losses to be covered in case
of any accident may vary slightly. Since the car insurance market is
very competitive, the premium rates and other terms and conditions
almost remain the same.
A
car insurance policy may provide property, liability and coverage
depending on the type of policy. The property coverage covers losses
for damage of the car or the theft of the car. Liability coverage
pays for any legal liabilities to other people for bodily harm or
property damage. And medical coverage covers expenses for treating
injuries, medicine expenses and funeral expenses in case of a car
accident. You may buy the different types of coverage depending on
how much you want to spend on your policy.
A
car insurance policy usually consists of 6 types of coverage. As
mentioned before a customer can select from the different types of
coverage. Most of the car policies last from six months to a year.
Your car insurance company will bill you when it is time to renew
your policy and be prepared for a rate hike.
The
different types of coverage are
Bodily
Injury Liability
This
type of liability covers the expenses of injuries that you may cause
to someone else while driving your car. Also the coverage includes
injuries caused to a person while driving other person's car.
Medical
Payments and Personal Injury Protection
This
type of liability covers the expenses for the treatment of injuries
to drivers and other passengers. The liability also covers medical
expenses and funeral expenses in the case of death.
Property
Damage Liability
This
type of liability covers for damage to the other person's car and
your car. It may also include damage to lamp posts, telephone poles,
fences and other public property.
Collision
This
type of liability covers expenses for damage to your car or the other
person's car. Even if you are at fault, then also you will be
reimbursed for the expenses of repairing the car.
Comprehensive
This
liability covers loses due to theft or damage to the car by something
other than collision with another object or damage to the car due to
fire, falling objects, explosion, earthquake, etc.
Uninsured
and Underinsured Motorist Coverage
This
liability covers damages to your car by another driver who is
uninsured.
The
coverages mentioned above are offered by all car insurance companies.
In almost all states, car insurance is mandatory. Therefore, it is
your responsibility as a car driver to have a policy.
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