Auto Insurance
Auto Insurance
Car Insurance
Motor Insurance
Auto insurance or car insurance is a type of insurance consumers can purchase for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of car accidents.
Coverage levels
By buying auto insurance (automobile insurance), depending on the type of coverage purchased, a consumer will be protected against:
- The cost of repairing the vehicle following an accident
- The cost of purchasing a new vehicle if it is stolen or damaged beyond economic repair
- Legal liability claims against the driver or owner of the vehicle following the vehicle causing damage or injury to a third party.
Liability insurance covers only the last point, while comprehensive insurance covers all three. However, even a comprehensive insurance doesn’t fully cover the risk associated with buying a new car. Due to the sharp decline in value immediately followed by a purchase, there is a period where the remaining car payments exceed the compensation the insurer paid for a “totaled” (destroyed, or written-off) vehicle.
Liability Insurance
Liability Coverage
Liability coverage is the base of every auto insurance or automobile insurance policy, and it is obligatory in the majority of the states. If you are responsible for an accident, your liability insurance will compensate for the physical injury and property damage expenses caused to others in the accident, as well as your legal bills.
Collision and Comprehensive Insurance
Collision and Comprehensive Coverage
If you cause an accident, Collision Coverage will pay the repair of your vehicle.
Medical Payments Insurance
Medical Payments Coverage
Medical Payments (MedPay) Coverage will pay for your and your passengers’ medical costs after the accident.
PIP and No-Fault Insurance
PIP and No-Fault Coverage
Personal Injury Protection (PIP) and larger No-Fault Coverage are extended types of medical payments protection.
Uninsured Motorists Insurance
Uninsured Motorists Coverage
Uninsured Motorists (UM) Coverage pays for your injuries if you are hit by a strike-and-run driver or somebody who does not have auto insurance.
Underinsured Motorists Insurance
Underinsured Motorists Coverage
Underinsured Motorists (UIM) coverage will pay out if the driver who strikes you causes more damage than his/her liability coverage can cover.
Other Auto Insurances
Other Auto Coverage
- Rental Reimbursement Insurance covers vehicle rentals obligatory because your car is damaged or stolen.
- Coverage for Towing and Labor Insurance charges in case of a road collapse.
- Gap Insurance for your new automobile will pay the difference between the actual cash value you get for the car and the amount left on your auto loan if your vehicle is totaled in an accident.
