Car Insurance Coverage

• Bodily Injury insurance coverage ?
  
  
• Property Damage insurance coverage ?
  
  
• Personal Injury Protection coverage ?
  
  
• Uninsured/Underinsured Motorists coverage?
  
  
• Comprehensive coverage?
  
  
• Car Collision coverage?
  
  
• Towing coverage?
  
  
• Rental coverage?
  
  
• Who is covered under my car insurance coverage?
  
  
• When I buy a new car is it automatically covered?
  
  
• Does my policy provide insurance coverage on the car I rent ?
  
  
• What does my personal policy cover?
  

Bodily Injury Insurance Coverage

If you are the cause of a car accident in which other people are injured, bodily injury coverage protects you against claims for their damages such as medical expense, lost wages, funeral costs, and pain and suffering.

Body Injury coverage is usually required by most states as part of the car insurance policy. It is also stated in terms of a/b. "A" represents the dollar amount in thousands of coverage per person where as "B" is the the dollar amount in thousands of coverage per accident. You need enough insurance to protect your assets from claims resulting from a serious car accident. Bodily Injury coverage can also serve as a safeguard against potential law suits.

You should not reduce this coverage over time even though your car ages and declines in value.

Property Damage Insurance Coverage

Property damage coverage is considered to be one of the most important aspects of a car insurance policy. It protects you in the event of a lawsuit. Property damage coverage also safegaurds your assets. That is why some sort of property damage policy is usually mandatory or required by most states. Make sure that you find a car insurance policy that offers you an adequate amount of property damage coverage.

Personal Injury Protection Insurance Coverage

Personal injury protection is commonly referred to as no-fault car insurance or PIP. Personal injury protection automatically provides you with car insurance coverage regardless of who is at fault.

Personal injury protection coverage provides personal reimbursement for certain medical and rehabilitation expenses, or lost wages from injuries to the driver, passengers, or pedestrians as a result of a car accident.

Personal injury protection is one of the coverages that is most often misunderstood. Coverage and limits for personal injury protection tend to vary from state to state. Make sure you check the guidelines for your state in order to receive the best personal protection that is possible.

In general, personal injury protection can prove to be very beneficial. However, for some consumers such as retirees, it is not recommended. Personal injury protection tends to duplicate a consumer's health insurance or fail to meet certain needs. A retiree may not be concerned with wage loss because he may already be receiving a fixed income. The retiree should look into medical payments coverage instead.

Uninsured or /Underinsured Motorists Insurance coverage?

Uninsured Motorist Coverage

Uninsured motorist coverage protects you and any passengers in your car directly against bodily injuries (and sometimes property damage) sustained in a car accident with an uninsured motorist.

For hit and run car accidents, uninsured motorist coverage generally pays up to the limit you buy as a part of your car insurance policy. Uninsured motorist coverage makes sure that you legally obtain the proper amount of money that you are entitled to from the uninsured motorist.

Underinsured Motorist Coverage

Underinsured motorists coverage is similar to uninsured motorists coverage and sometimes offered together as packages. However, these two car insurance coverages should not be confused with each other.

Underinsured motorists insurance pays for injuries not fully covered by the other motorist's car insurance. This policy helps to compensate you - the injured party for the difference between an injury suffered and the liability covered by the insurance of the motorist/driver who is at fault.

Although car insurance is required to drive, there are an increasing number of uninsured motorist who continue to drive without car insurace coverage. That is why there is growing need for you to protect yourself from an uninsured or underinsured motorist.

What is Comprehensive Insurance coverage?

Comprehensive car insurance coverage pays for damage to your car if it is stolen, vandalized, or damaged by fire, flood, fallen trees, storms, other natural disasters, collisions with animals, etc.

These scenarios may happen regardless of where you live and they may not be preventable. This is the main reason that comprehensive car insurance coverage is vital.

Comprehensive car insurance coverage is required by lenders. So if you took out a loan to buy your car you must take comprehensive coverage. Otherwise comprehensive car insurance coverage is usually optional.

Increasing your deductible to the highest level that you can afford will reduce your car insurance premiums. An increase in your car insurance deductible will significantly reduce your car insurance premiums. We don't recommend a deductible higher than you can afford to pay.

Comprehensive car insurance coverage pays only the depreciated value of your car. The depreciated value of the car is the current worth of the car minus the amount of deductible stated in the insurance policy. Comprehensive car insurance coverage can be very advantageous to owners of new or expensive vehicles.

Car Collision Insurance Coverage

Collision insurance for your car covers the cost of repairing your car when caused by an accident with another automobile or an object such as a tree, deer, etc.

Collision insurance coverage is required by lenders but otherwise optional. At the same time, accident indemnities for your automobile can also be the most expensive.

If you drive an older car worth several thousand dollars or less, there is little reason to purchase accident policies, for the premium costs may not be worth the potential benefit if you were to get into an accident.

Auto coverage companies are only required to cover expenses up to the car's book value which may be less than it would cost to fully repair or replace the automobile following an accident.

Increase your deductible to a higher amount to reduce your auto coverage premiums. Again we don't recommend a deductible higher than you can comfortably afford in the event of an accident. Accident indemnities are also more ideal for consumers who own new or expensive vehicles.

Towing Insurance Coverage

Towing coverage may reimburse you for the cost of having your car towed to a repair shop following a car accident or breakdown.

Towing coverage can also provide emergency road assistance in the event your car breaks down and you have to have the car repaired. This coverage only covers labor performed at the disabled location of the vehicle. Towing coverage does not include repairs made at the repair shop.

Towing coverage may include:

• Towing the car to the closest repair shop during regular business hours.
• Towing the car if it is stuck on or next to a public street or highway.
• Mechanical labor at the break-down site.
• Emergency road services, change of tires, gasoline fill-up, change of oil, etc.

Do not duplicate car insurance coverages if your dealer or other 3rd party motor club already provides this coverage adequately.

Car Rental Insurance Coverage

Car Rental Insurance generally reimburses you up to $15 to $20 per day for the cost of a rental car when your car is in the shop for more than 24 hours for repairs due to a car accident or covered claim.

• CDW (Collision Damage Waiver), LDW (Loss Damage Waiver), PDW (Physical Damage Waiver). The consumer pays a daily charge for a rental car. The rental car company will not charge the rentor if the car is lost or stolen (according to the CDW and LDW). However, this does not include third party damages or damages made to the other car.
  
  
• The Personal liability coverages such as LIS (Liability Insurance Supplement). Additional liabilty coverage is not paid in excess of your personal insurance.
  
  
• PAI (Personal Accident Insurance or Coverage). Payment in result of death or serious injury caused by car accident from rental car.
  
  
• PEC (Personal Effects Coverage) or Personal Property Insurance. Responsible for lost or stolen objects from a rental car.
  

Car Policy Insurance Coverage

Generally, your car insurance policy covers you, your spouse, family members, anyone driving the car with your permission, and anyone who reasonably believes he or she is entitled to drive your car.

Car insurance coverage follows the car, not the driver. You could however be personally liable if your car is involved in an accident.

Car Insurance is usually restricted to the United Sates and Canada. There are other conditions stated in your insurance policy that you should be aware of.

Coverage under your car insurance policy may be denied under the following circumstances:

• If someone who is driving your car who is not authorized by law to drive (This can include a minor without a drivers license, or someone who's license has been revoked or suspended)
• A Car that is involved in racing
• A person who is driving a car under the influence of drugs, alcohol or any other illegal substance.
  

These are only a few conditions that insurance provides will not provide coverage for. Check with your car insurance provider for additional restrictions and information that may apply.

New Car Insurance Coverage

Yes, when you replace an existing car or purchase an additional car, temporary car insurance coverage is automatically granted provided you notify the car insurance company within a specified period of time (usually 30 days). If you forget to notify your car insurance provider, coverage fees may be charged and your provider may even opt not to insure the new car. You may also purchase a new car insurance policy for your car as well. A car must be insured before you drive it.

When purchasing a new car, it is also an excellent opportunity to review your existing car insurance coverage and comparison shop with other companies. Insurance quotes on the car, year, make, model, and condition should be properly accessed to make sure that you are getting the best deal on your car insurance coverage.

Keep in mind any necessary repairs that may be needed as well any potential factors that may affect the value of the car. If the new car is being refinanced, collision and comprehensive costs will also be required.

When I buy a new car is it automatically covered?

Yes, usually your car insurance coverage should cover rental cars. Almost half of the car insurance policies extend their coverage to a rental car especially if you are renting that car for personal use.

Your car policy usually does not cover pickups, trucks, SUV's, or overseas for rental cars. Car insurance usually does not cover business use. Read your policy carefully or consult with your car insurance agent before purchasing any rental car insurance elsewhere.

Health and life insurance can also cover rental car insurances as well. Some employers tend to provide rental car insurance indirectly to their employees while traveling. Usually some kind of blanket policy is enforced to protect employees from any injuries that may occur during travel. Once again, check with your existing insurance provider to see if they provide rental car insurance.

If not, you may considering purchasing additional rental car insurance for your rental car. Not checking could result in paying for unnecessary expenses or paying for rental car insurance that you may already have!

What is Personal Injury Coverage?

Personal injury protection is commonly referred to as no-fault car insurance or PIP. Personal injury protection automatically provides you with car insurance coverage regardless of who is at fault.

Personal injury protection coverage provides personal reimbursement for certain medical and rehabilitation expenses, or lost wages from injuries to the driver, passengers, or pedestrians as a result of a car accident.

Personal injury protection is one of the coverages that is most often misunderstood. Coverage and limits for personal injury protection tend to vary from state to state. Make sure you check the guidelines for your state in order to receive the best personal protection that is possible.

In general, personal injury protection can prove to be very beneficial. However, for some consumers such as retirees, it is not recommended. Personal injury protection tends to duplicate a consumer's health insurance or fail to meet certain needs. A retiree may not be concerned with wage loss because he may already be receiving a fixed income. The retiree should look into medical payments coverage instead.