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Car Insurance Coverage – comprehensive, property damage, uninsured motorist

Insurance Coverage for Bodily Injuries
Bodily injury insurance coverage protects you from damage claims made if you are responsible for an accident that has resulted in injuries.

Most states require that body injury coverage is included in the policy. They are stated in terms of coverage per person and per accident. You need to have enough insurance to safeguard your assets from claims and lawsuits.

Insurance to Cover Property Damage
Property damage coverage would protect you from claims against damage that results to somebody’s property. Coverage amount would change according to the insurance company and the extent of property damage.

This is one of the most essential components of a car insurance policy that would protect your assets from claims and a lawsuit. Some form of property damage coverage is usually compulsory in most states.

Insurance Coverage to Protect against Personal Injury
Also known as no-fault car insurance, personal injury protection (PIP) provides protection against personal injury regardless of who was at fault during an accident.

This coverage offers compensation for some expenses that occur because of the accident. Limitations and amount of coverage for this type of protection varies from state to state.

This isn’t recommended for retirees as they operate like a health insurance and don’t meet some of their needs. Retirees should focus more on medical payments coverage.

Uninsured Motorist Coverage
This coverage protects you and all passengers in your car from bodily injury and property damage that occurs during a car accident with an uninsured motorist. The coverage pays up to the maximum limit of your policy in the event of a hit and run accident. Uninsured motorist coverage ensures that you would legally obtain the amount of money that you are supposed to be from the uninsured motorist.

Underinsured Motorists Coverage
Similar to uninsured motorist coverage, underinsured motorist coverage helps pay for injuries that are not fully covered by the policies that the underinsured motorist has. This policy helps ensure that you receive all the claims that you are entitled to, regardless of how much the other party’s policy pays.

Even though car insurance is mandatory, there are more uninsured drivers out there and thus the need to seek protection from such drivers is increasing.

Comprehensive Insurance Coverage
This coverage is useful when a car is stolen, vandalized or damage. Damage could occur by natural elements or unforeseen circumstances. This is one reason why comprehensive coverage is essential for all car owners.

You could reduce your insurance premiums if you keep the deductible levels high. However, be sure you can afford the deductibles, in the event you need to make those payments.

This coverage pays for only the depreciated value of the vehicle, which is defined as the current value of the car after deducting the deductible amount mentioned in the policy. Comprehensive insurance coverage is especially beneficial for those with new or luxurious vehicles.

Car Collision Insurance Coverage
This covers repair cost that would come out of damages caused by an accident. Coverage is only required to cover expenditures up to the book value of the car, which could be less than the cost to repair the car.
To keep the premiums low, you would need to increase the deductible. But, do ensure that the deductible is within your affordable range. This is a more ideal form of coverage for those with new and costly automobiles.

Towing Insurance Coverage
This would help cover the cost to have your car towed to the repair shop after an accident or breakdown. This would also provide emergency roadside help when your car breaks down suddenly.

The towing insurance coverage only covers labor costs, and not repairs done at the mechanic. This may include towing the car to the nearest repair shop during business hours or in the event it is stuck on or near a public road or highway. It could cover labor at the site and any emergency road services necessary.

Car Rental Insurance Coverage
Typically car rental insurance compensates for up to $15-$20 per day when the rental car is being repaired for more than 24 hours because of a car accident or covered claim.

There are 4 types of car rental coverage
1. Collision Damage Waiver (CDW)
Also known as Loss Damage or Physical Damage Waiver, this ensures that the renter does not get charged in the event the car is lost or stolen but this would not include any third party damage that affects the other vehicle.

2. Liability Insurance Supplement, a form of Personal Liability Coverage.
Any coverage that goes over your personal insurance would not get covered here.

3. Personal Accident Insurance or Coverage (PAI)
It takes care of payments that result from severe injury or death that result from a car accident involving a rental car.

4. Personal Effects Coverage (PEC)
This would take care of anything lost or stolen from a rental car.

Be sure to purchase the right amount of rental car insurance that fits the rental car. Do not buy any coverage that your personal insurance already provides.

Car Policy Insurance Coverage
Although car insurance goes with the car, you could be personally liable in the event that your car is involved in an accident. Car Insurance is normally limited in the United States and Canada.

Car Insurance Policy could be denied under the following circumstances.
1. If the driver is legally unauthorized to drive
2. The car was engaged in racing.
3. The driver was under the influence of illegal substances like drugs or alcohol.

New Car Insurance Coverage
When you buy a car, you would automatically be insured, provided the insurance providers are notified within about 30 days. You could also purchase a new policy for your car. Either way, the car should be insured before it is driven. Buying a new car is an excellent time to scout for newer and more competitive car insurance policies. One needs to consider all potential repairs or if the car is refinanced before deciding the right policy.

 

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