Car Insurance Policies

2007-03-08 10:33:40

( Automobiles )



Most states have a law requiring all vehicle owners to purchase an auto insurance policy. Different types of coverage may be selected and included in the auto insurance policy that you purchase. Some states require that a minimum amount be purchased for certain coverage types, while other coverage types are optional.

Third party liability coverage is compulsory in all states. It pays for any costs for property damages inflicted by your vehicle as a result of a vehicular accident. Bodily injury is also part of the coverage, and can pay for any pain and suffering, medical expenses and lost wages. Any legal expenses as a result of a lawsuit can also be covered. There is a limit as to how much the insurance company will cover, and to increase this limit you will need to pay a higher car insurance premium.

Collision coverage is another type of car insurance that is also compulsory in all states. It pays for any repairs to any damages to a vehicle, or for its replacement. When you purchase this coverage, the insurance company will indicate a certain amount as deductible, which is the amount that is taken away from the total amount of money that you are paid by the insurance company each time you make a claim.

A comprehensive coverage will pay for any damages or loss incurred by the policyholder when an accident occurs, regardless of fault. This type of coverage does not cover for any losses that are a result of fire, theft, vandalism, wind, hail and flood.

Some states require the purchase of personal injury protection to pay the driver’s medical expenses and any wages lost as a result of the accident. This may not be required if you have medical insurance coverage.

The uninsured motorist is an individual who does not have any insurance coverage. Coverage may be bought to cover any damages caused by another party, who does not have any third party liability insurance.

Coverage can be purchased to cover for the underinsured motorist who does not have enough third party liability insurance to cover for the damages on your vehicle.

If you rent a car, the purchase of a short term car insurance policy is required by law to cover for any damages that are caused as a result of any accident.

From the above categories, you should now be able to purchase a car insurance policy. By deciding on which categories to include, you can then obtain a quote from the various car insurance agencies in the market. Before you purchase a car insurance policy you should obtain several auto insurance quotes so that you can compare car insurance rates. Quotes that are provided will depend on your driving record, the kind of car you drive and the area where you live.


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