AUTOMOBILE INSURANCE COMPANIES: SECURING AUTOMOBILES IS THEIR BUSINESS

2007-06-20 15:49:53

( Insurance )



Automobile insurance is a contract, which disseminates risk among several drivers or policyholders, in the process reducing damages from accidents by a single driver. It can be purchased for cars, trucks and other vehicles and the goal of automobile insurance companies is to give protection against losses due to automobile accidents.

What Are The Types Of Coverage?

Depending on the state in which you live, automobile insurance companies, such as those auto insurance discounters houston, may provide you with different types of auto insurance coverage.

· Liability insurance provides security for individuals protected under your policy should they obtain legal responsibilities for damages caused by auto accidents. When the liability covers personal injury, this is a bodily injury liability; claims to damaged property are covered by the property damage liability.
· Personal Injury Protection covers damages resulting from auto accident by individuals protected under your policy.
· Uninsured/Underinsured Motorist Coverage provides payments to individuals given coverage under your policy as well as other passengers in the vehicle who sustained injuries resulting from a hit-and-run accident or in cases when the driver at fault is not insured or underinsured.
· Collision Coverage, often packaged as an option, insures damages to your car due to collision with another object or vehicle.
· Comprehensive Coverage, also packaged as an option, protects damages to your car due to theft or damage caused by ways other than collision.

How Are The Charges Computed?

Depending on the jurisdiction, insurance premiums can be either government mandated or determined by automobile insurance companies in compliance with outline of regulations established by the government. Often, automobile insurance companies will have more leeway in providing auto insurance quotes on physical damage protection than mandatory liability claims.

When the government does not establish the policy, it is normally a product from computations of an actuary founded on statistical data. The premium changes depending on several conditions that may have an effect on the anticipated amount of future claims. Among these factors are characteristics of the car, selected coverage, driver profile, and car usage.


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