Automobile insurance is an agreement between the car owner and the insurance company where the company agrees to pay for losses incurred in case of an accident, theft, or other damages of the automobile.
The car owner has to pay an insurance premium and the insurance company pays for financial losses as defined in the policy.
Automobile insurance generally provides three types of coverages: Property coverage - This type of coverage pays for theft of the car or any kind of physical damage made to the car in case of an accident or any other reason.
In case the policy holders car has been stolen, or if has been caused damage, the insurance company pays for the expenses incurred.
Medical coverage or Personal Injury Protection (PIP) - Medical coverage takes care of the expenses related to treating injuries and rehabilitation after an accident.
It also pays for lost wages, funeral expenses, and services replaced after a person has been injured in an accident.
Liability coverage - The policy holder might damage someone else's car or property such as a fence, buildings, or telephone poles.
In case an individual is legally responsible for causing damage to others property or bodily injury of a person, liability coverage pays for it.
A basic automobile insurance company will also include the following coverages.
It is important for the prospective policy holder to know that each of the coverages is priced individually.
Collision coverage - If the policy holders' car collides with another car or object, or in case it flips over, the damages are covered by the insurance company.
Even if the policy holder is at fault for the accident, the costs of repairing the car will be reimbursed by this coverage.
If the car owner is not at fault then the insurance company will try to recover the costs from the opposite party's insurance company.
Uninsured and underinsured motorist coverage - If a person or a designated driver is hit by a hit-and-run or an uninsured driver, then this coverage will reimburse the victim.
This coverage is also applicable if the driver at fault is unable to pay for the victim's total loss because of insufficient insurance.
Comprehensive coverage - Loss due to theft of an automobile or damage caused by factors such as explosion, earthquake, fire, flood, vandalism, or missiles are reimbursed by this coverage.
This pertains to damages that are caused by something other than being hit by another car or object.
Contact with animals on the road is also covered by this.
Auto insurance companies provide policies that last up to six months or a year.
Customers are notified by mail when they have to pay their premium or renew their policy.
The car owner has to pay an insurance premium and the insurance company pays for financial losses as defined in the policy.
Automobile insurance generally provides three types of coverages: Property coverage - This type of coverage pays for theft of the car or any kind of physical damage made to the car in case of an accident or any other reason.
In case the policy holders car has been stolen, or if has been caused damage, the insurance company pays for the expenses incurred.
Medical coverage or Personal Injury Protection (PIP) - Medical coverage takes care of the expenses related to treating injuries and rehabilitation after an accident.
It also pays for lost wages, funeral expenses, and services replaced after a person has been injured in an accident.
Liability coverage - The policy holder might damage someone else's car or property such as a fence, buildings, or telephone poles.
In case an individual is legally responsible for causing damage to others property or bodily injury of a person, liability coverage pays for it.
A basic automobile insurance company will also include the following coverages.
It is important for the prospective policy holder to know that each of the coverages is priced individually.
Collision coverage - If the policy holders' car collides with another car or object, or in case it flips over, the damages are covered by the insurance company.
Even if the policy holder is at fault for the accident, the costs of repairing the car will be reimbursed by this coverage.
If the car owner is not at fault then the insurance company will try to recover the costs from the opposite party's insurance company.
Uninsured and underinsured motorist coverage - If a person or a designated driver is hit by a hit-and-run or an uninsured driver, then this coverage will reimburse the victim.
This coverage is also applicable if the driver at fault is unable to pay for the victim's total loss because of insufficient insurance.
Comprehensive coverage - Loss due to theft of an automobile or damage caused by factors such as explosion, earthquake, fire, flood, vandalism, or missiles are reimbursed by this coverage.
This pertains to damages that are caused by something other than being hit by another car or object.
Contact with animals on the road is also covered by this.
Auto insurance companies provide policies that last up to six months or a year.
Customers are notified by mail when they have to pay their premium or renew their policy.
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