by Administrator
11. March 2013 12:42
Auto insurance or car insurance is basically divided into different categories depending on the number of ways in which they provide you protection. This includes:
- Liability coverage: In this case, you get insurance coverage when it is your fault due to which the accident has occurred. The money will be provided to the people whom you have hurt in the accident. However, coverage will not be applicable on the people traveling in your car.
- Bodily Injury Liability (BIL): Here, the medical expenditure of the people hurt in an accident by you is paid for by the insurance company.
- Property Damage Liability: In this instance, the insurance company will pay for the harm done to the other car by you in the accident.
- Personal Injury Protection (PIP): This will provide for the medical expenditure incurred by you and the people traveling in your car when the accident occurred. Some policies also provide for the lost wages if you have to take leave from work due to accidental injuries.
- Uninsured Motorist Coverage: This type of coverage is beneficial to cover costs if someone without an insurance policy hits you in an auto accident.
- Comprehensive: This is a policy wherein you will be given coverage if any damage to your car happens due to reasons other than an accident. This includes insurance cover for theft as well as any other damage.
As far as the Personal Injury Protection policy (PIP) is concerned, you probably should not be shelling out too much of money for that. A health insurance as well as disability insurance from your employer is good enough in this case. However, you must ensure that you have the requisite coverage against uninsured and under-insured drivers. Getting this type of insurance cover will not prove to be a very costly proposition for you.
On the other hand, comprehensive coverage is a must if you want to get your damaged car repaired after the accident. This policy also holds benefit if you want to outright buy a new car after the auto accident. However, there are deductibles and remember that you will be paid the insurance depending on the present value of car. Therefore, it is a wise option to select the highest deductible that is affordable on your pocket. Choosing a higher deductible is beneficial because it will bring down your premium.
In conclusion, it can be said that how much car insurance you require will depend on your finances as well as requirements. Get the best deal that is most beneficial in the longer run and provides satisfactory relief in case of an unfortunate incident of a car crash.
