Reviewing your policy options for auto insurance
June 5, 2010 by admin
Road and car accidents can happen at any time, anywhere without warning and sometimes when you least expect it. Even with all the safety gears your vehicle has to offer, we can never be too trusting with it since accidents can happen to anyone. In order to ensure protection during tragic circumstances, it is a must to have vehicle insurance. Any damage that will be incurred during the event on you as the driver and your car will be covered by your insurance policy.
There are many types of car insurance for you to choose from. These insurance policies operate based on the federal law requirements mandated by the state government.
Fully Comprehensive Auto Insurance
Among the auto insurance types, the comprehensive insurance is the most expensive and perhaps the most common type of auto insurance. This policy coverage insures the vehicle owner from all possible types of road disasters and other unexpected events such as theft, vandalism, and natural calamities. An advantage of this kind of insurance is that the owner does not have to show ‘fault’ for the claim to be covered. If, for example, you bumped into another car and the other party is at fault but refuses to cooperate or does not carry insurance, you as the inconvenienced driver will still receive protection and damage claims from your own insurance company.
Liability Insurance
The basis for liability coverage is when you unintentionally cause physical injury or property damage and will not be able to shoulder the medical expenses or the cost of the vehicle repair and even replace it. This type of insurance is mandated to vehicle owners in majority of the states and cities. There are three types of liability insurance:
1. Property damage liability
If you caused the accident, your insurance company will pay for the damages which will cover repair cost and replacement of damaged property.
2. Bodily injury liability
If you are liable for the accident, your insurer will cover for the physical injuries and death of those affected.
3. Uninsured or underinsured motorist coverage
When the other party is at fault and happens to have little or no insurance coverage, this type of liability insurance will take care of your claims.
Collision Insurance
This type of car insurance provides coverage for the damage to your vehicle at your own fault. The insurance policy will shoulder all incurred damages over the amount to be deducted up to the policy limit. However, the insurance company will deny the claim if the event was done on purpose based on further investigation of the incident.
Third Party, Fire and Theft Insurance
Similar to comprehensive coverage, the insurance company provides coverage for events such as theft and fire. The difference is that with accidents, the insurer does not cover the claim if you are responsible for the accident, or happen to hit another vehicle. Also, when involved in an accident wherein the other drive is at fault, your insurance company will still not cover you for such, regardless of whether the other driver has insurance or not to shoulder the damages.