Specific Types of Car Insurance Policy Coverages January 14, 2007
Posted by admin in : Car Insurance Articles, Types of Car Insurance, Tips On Car Insurance Selection , add a commentSpecific type of car insurance policy coverages:
Liability to Bodily Injuries
This type of car insurance is a basic requirement in most, if not all, areas and countries.
Liability to bodily injuries provide coverage in other people’s bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering. In the event of a serious accident, you want enough car insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily injury liability covers injury to people, not your vehicle. Therefore, it’s good idea to have the same level of coverage for all of your cars. Bodily Injury Liability does NOT cover you or other people on your policy. Coverage is limited to the terms and conditions contained in the policy.
Normally the country or state limits are usually low; in fact too low, to protect you sufficiently. Purchasing higher bodily liability car insurance would not increase your premium too much. So if you can consider getting a higher and better coverage. There is no deductible.
Liability to Property Damages
This type of car insurance covers damages to someone esle’s property. May it be the other party’s car or other vechiles involved in the accident, but it also covers other type of property such as buildings or public properties ( such as lamposts, barriers etc). It also pays for legal costs. It also covers you personally, members of your family and those you gave permission to drive your car.
Check with your local car insurance company for the basic requirements. There is no deductible.
Collision Insurance
Car Insurance coverage for collision covers damages to your car when your car hits, or is hit by, another vehicle, or other object. It pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. For older cars, consider dropping this coverage, since coverage is normally limited to the cash value of your car. Coverage is limited to the terms and conditions contained in the policy.
Collision insurance carries a deductible, and the maximum you can collect for repair costs is limited to the value of your car proir to the accident minus the deductible. This coverage is optional. so it is wise to consider carefully whether you need it or not. Weigh the vaule of your car against the premium ypu have to pay to cover it.The cost of the collision car insurance is determined by the value of your car, or how much it would cost you to make a replacement if it were totaled in an accident. Add the deductibles to cost of the collision insurance for the car. If it exceeds the market value of the care, collsion insurance is a waste of your money because you will be paying out more than you can ever collect if you have an accident that totals your car. If the deductible and collision isurance combined are less than the value of your car, then collison insurance makes sense. As the age of your car increases, the cost to replace it goes down, so before renewing your policy every year, make a accessment whether or not it makes sense to keep the collision insurance.
Comprehensive Insurance
Comprehensive Car Insurance Coverage Covers your vehicle, and sometimes other vehicles you maybe driving for losses resulting from incidents other than collision. For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire, or animals, falling objects, explosions, earthquakes, riots and civil commotions or even if your car is overturned during a natural disaster. It pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. Coverage is limited to the terms and conditions contained in the policy.
Compressive coverage is normally not compulsary in most countries. How much you carry is up to you and should never insure your car for more than its actual cash or market value. Damages not associated with accidents can still be rather expensive, and so it is advantageous to include comprehensive car insurance coverage on your car insurance policy.
Medical Expenses Insurance
Medical Expensed Car Insurance covers medical expenses to you and your passengers injured in an accident. There may also be coverage if as a pedestrian a vehicle injures you. This type of car insurance overage is limited to the terms and conditions contained in the policy. It pays the medical bills, disability,lost in wages, even the costs for furnetal. It Does NOT matter who is at fault, and covers you, your family members and passengers in you car.
Coverage for Uninsured Motorists
This car insurance coverage pays for injuries to you and your passengers in you car if you are involved in an accident, and that party does not have car insurance. You will be covered if you got clobbered by a hit-and-run driver.Normal this type of car insurance covergae is mandatory. Uninsured motorist’s coverage increases the payout to make sure you get the protection you need.
