Auto insurance is a legally binding contract between you, the insured, and the insurer who compensate you for financial loss in case of an accident or even theft. In return for your paying a fixed premium, the insurer agrees to pay all your losses as defined in your policy. The insurer will claim the agreed amount from the named insured on the occurrence of an accident. In most states, the insurer will also be liable to the named insured’s beneficiaries. Your policy will detail exactly what you have to do to make yourself entitled to the benefits listed in it.
An auto insurance premium provides coverage for physical damage that you cause to another person’s vehicle or property. It covers medical costs and other payments that your health care provider would have to make if you were injured in an accident. It may also cover damage to your vehicle, other people’s property, or injuries to any employee of the company who is authorized to work on your car.
Bodily injury liability protects you if you cause bodily injury to another person while driving. This portion of auto insurance coverage pays the expenses for treating injuries to an employee or any passenger who was in the car with you at the time of the accident. With this type of coverage, bodily injury liability protects the legal costs incurred by the injured person in a case that he or she sues you. The cost of treating injuries caused by you can be very high, which is why this portion of auto insurance coverage is considered a very important one.
Hit-and-run accidents happen when a driver in an automobile fails to stop when hit by another vehicle. This part of auto insurance protects the driver who was in the wrong if he or she didn’t stop at the scene. If this driver caused an accident by not stopping at the scene of the accident, you can get hit-and-run coverage reimbursed to you. However, it is important that you report any hit-and-run accidents to the authorities because this will help them to identify the driver who ran a red light, since hit-and-run drivers are often known to have many speeding tickets.
Just as there are different types of auto insurance coverages, there are also different ways to apply for and receive them. You can choose between several different coverage plans for your vehicle. Usually, you will have to choose the minimum type of coverage your state requires you to carry. There are also various plans that offer coverage for a wide variety of situations. When you shop around for personal auto insurance coverage, take into consideration what your needs are, especially if you have a new car or an old vehicle you no longer drive.
Some insurers have tiered personal auto insurance policies, which means that you receive a different level of coverage depending on how much money you spend. Other insurers may provide coverage for more risky drivers, which means they might have a higher premium. In some cases, insurers might be able to provide a discount for insuring more than one vehicle with the same company. It is important that you read the policy information provided by the insurer very carefully, because it will describe in detail exactly what it covers, and what you can and cannot do to protect yourself should you get in an accident. Many insurers also offer discounts for good driving records, your age, if you have more than one vehicle insured with them, and more.
