An auto insurance coverage is very helpful to any vehicle owner. It’s a basic protection tool that can save you from huge expenses in the event your car gets damaged or you get involved in a road accident.
But not all vehicle owners may be fully knowledgeable of their options or maybe confused when it comes to auto insurance. There are different types of coverage available today apart from the common comprehensive one that many are aware of. One can actually choose a specific coverage or additional coverage depending on his or her needs.
Property Damage Liability – This covers damages caused by your vehicle to another person’s property or when you are found liable in an accident.
Liability Coverage – This will pay for damages incurred by other people involved in an accident which you apparently caused. A minimum amount is required by all states in the U.S. but you can spare yourself from buying this if you can show proof of personal financial funds to cover the requirements.
Bodily Injury Liability – This will help you pay for the expenses of a person or people injured in an accident where you are to be blamed. It will pay for medical bills, rehabilitation of the person injured, work time lost, funeral expenses, legal fees and emotional or physical suffering.
Collision Coverage – As its name suggests, this will cover your vehicle when it gets involved in a collision either with another vehicle, a guardrail, a building or any other stationary object. It will pay for repairs or replacement of the car based on its current value.
Fire and theft – In case your car is damaged due to fire or gets stolen, this coverage will pay for repairs or replacement. Other specific coverage may also be included such as when your car gets damaged due to collision, sinking or stranding of a trailer.
Physical Damage – This covers collision, comprehensive as well as fire and theft. Normally, state law requires that you carry the minimum coverage particularly if you still haven’t fully paid your vehicle.
Personal Injury Protection – Also known as PIP, this is required in 16 states and covers 80 percent of medical expenses, lost wages and funeral costs in the event someone gets killed in an accident. Unlike the bodily injury liability, this one covers the policy holder, his passengers and any other person authorized to drive the car concerned.
Pay-Per-Mile – This is a new coverage that offers protection according to the number of miles driven. This was developed to meet the needs of home-based workers (telecommuters) and is also ideal for those who want insurance coverage for a second car not often used.
Photo via carinsurancecomparison.com
About the guest author:
Daryl is a freelance writer focusing on the various types of insurance. You may ask for free car insurance quotes from autoinsurance.US.
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