We have all done it, whether shopping for car insurance for our family, or ourselves understanding the specifics of each policy and the associated differences from state to state, we can easily become confused about policy specifics when shopping for car insurance. Understanding the key components within each policy and the various options for coverage within each component is essential in purchasing the right
affordable car insurance. Having the right auto insurance assures that you; your family, and your assets are adequately covered should you ever be involved in a serious automobile collision. Below we will review a few of the typical coverage's associated with the purchase of automobile insurance.
PIP or Personal Injury Protection
Available in most states and commonly referred to as "No-Fault" insurance; PIP will cover the medical bills and often too, lost wages from should you be disabled or unable to work as a result of an accident. This protection and with most other protections associated with your car insurance policy are subject to the predetermined limits you select depending on your needs and the relative costs associated with carrying higher limits.
Liability Coverage
Liability Coverage provides both Bodily Injury and Property Damage coverage up to the amount you select when you purchase your policy. The insurance company will pay for the damages to an injured person(s) and for the associated property damage you are legally required to pay as a result of an automobile accident. Due to the costly nature of this particular coverage, many people attempt to save money in this area of coverage. It is advisable you ensure you maintain adequate coverage in liability as inadequate coverage could be financially disastrous should you be involved in a serious accident.
Medical Payments
This coverage applies no matter who is at fault in the accident. It covers the cost of reasonable and necessary medical care, is typically limited to a specific time frame following an accident, and varies in the limits you may select when you purchase your policy.
Uninsured Motorist
This coverage pays for damages you would have received from the other person's insurance company had they been properly insured. Uninsured Motorist coverage may also protect you in the event the other driver is under insured. Economics has forced many people into making tough choices in their respective family budgets and it is estimated that numbers uninsured motorists will continue to rise as American drivers are faced with tough decisions regarding their own personal and family budgets.
Comprehensive Coverage
This coverage is designed to include damage from non-accident related incidents that may occur to your vehicle. This can include damage from fire, theft, vandalism, hail, flood damage or damage that may be incurred due to striking an animal. This coverage can also cover the costs of a rental car due to theft. Again, limits apply based on the amounts you specify.
Collision Coverage
If your vehicle is damaged in a collision, either independently or with another vehicle, collision coverage pays for the damage to your vehicle. Typically there is an associated deductible, the amount you are require to pay, in the event the damage exceeds the deductible amount. This can be an economical way to insure your vehicle if you own an older automobile or own your car with no associated lean-holder (i.e. bank or other financial institution to which you make payments).
Roadside Assistance
This coverage is becoming increasingly popular for many car insurance companies and is very affordable. It offers motorists assistance in the event of a flat tire, mechanical or electrical break down, dead battery, etc. Typically towing is free to the closest dealership for you type of vehicle (i.e. Ford F150 towed to closest Ford Dealership for free). Or you can have you car towed to a garage of your choice paying towing fees in access of the associated mileage to the closest dealership.
These are just a few of the common automobile insurance coverage's' available in the marketplace today. Many states offer minimum requirements for some of these specific coverage's and you will find that these minimums will likely not meet with your particular needs and will leave you at risk if you are involved in an accident.
There are many more coverage's available and you would be prudent to speak with a professional insurance agent, in depth, about your specific needs and requirements and develop a policy that is balanced with both coverage and price.