Auto Insurance 101By Chris Tolamalu
Auto insurance, as the term suggests, is insurance that you can purchase for your vehicle (cars, trucks, SUVs, motorcycles, etc.). It provides protection against losses incurred as a result of vehicle accidents. While the product seems simple, there are many different types of auto insurance policies available for purchase. Depending on the policy that you choose, your coverage levels and types will vary. Broadly speaking, these are the types of auto insurance programs on the market today:
Coverage:
• ‘Comprehensive coverage’ (Comp) – This kind of insurance insures your vehicle against the cost of purchasing a new vehicle if it is stolen or destroyed in a fire.
• ‘Collision coverage’ (Coll) – This kind of insurance insures your vehicle against the cost of repairing the vehicle following an accident or the cost of purchasing a new vehicle if it is damaged in an accident beyond economic repair.
Protection:
• Personal Injury Protection (PIP) - This insures against the cost of medical expenses and lost wages related to the use, ownership or maintenance of a motor vehicle. This insurance is mandatory in some U.S. states.
• Medical Payments (MP) - insures against the cost of medical expenses for bodily injury sustained in an accident beyond any expenses that may be covered by PIP.
• Legal liability claims against the driver or owner of the vehicle following the vehicle causing damage or injury to a third party.
While ‘Liability insurance’ covers only legal liability, ‘comprehensive insurance’ covers PIP, MP, as well as legal liability. In the United States, liability insurance covers claims against the policyholder and any other operator of the insured’s vehicle. If, however, any other operators live at the same address, they must specifically be covered on the policy. For rented vehicles, most rental car companies offer insurance to cover damage to the rental vehicle.
While comprehensive insurance covers most aspects of damage which can affect the car itself or the driver, there is one risk associated with buying a new car is not covered even by comprehensive insurance – once the car is bought, there is a sharp decline in its value. During this period (immediately after a car is bought), in which the remaining car payments exceed the value of the vehicle and thus the compensation the insurer will pay for a ‘totaled’ (destroyed, or written-off) vehicle, customers may consider purchasing ‘GAP insurance’. GAP insurance was established in the early 1980's to provide protection to consumers based on buying and market trends.
|
Users of comparethemarket.com Could Save Nearly 60% On Car Insurance, Latest Research Reveals
LONDON, January 27, 2012 /PRNewswire/ --Independent research released has revealed that customers looking for cheap car insurance could save up to £844.15 or 59.75% by using price comparison site comparethemarket*. ...
IntelliChoice Announces Its 2012 Best Overall Car Values of the Year
CAMPBELL, CA--February 2, 2012: IntelliChoice, the market leader in automotive ownership cost and car value analysis for over twenty-five years, announced today the winners of its 2012 Best Overall Value of the Year (BOVY) awards.
Reading PA Car Insurance Website Launched, Offers 25 Competing Brands
American Insuring Group, Ltd, a Reading, PA agency offering 25 competing brands of insurance, is pleased to announce the launch of a state-of-the-art website to help customers save on car insurance, homeowner?s insurance, and health, life, and commercial insurance.Reading, PA (PRWEB) January 28, 2012 American Insuring Group, Ltd, a Trusted Choice independent agency offering over 25 competing ...
IntelliChoice Announces Its 2012 Best Overall Values of the Year
IntelliChoice, the market leader in automotive ownership cost and car value analysis for over twenty-five years, announced today the winners of its 2012 Best Overall Value of the Y
Best and worst insurance companies for customer satisfaction
Is your insurance company one of the best or worst? A new survey by Insure.com reveals which companies are satisfying their customers the most.
Cheapest Ever Car Insurance Quotes
CarInsuranceMegastore.co.uk Blows Away Competitor Prices with Quotey Quotey Comparison EngineBirmingham (PRWEB UK) 7 January 2012 Cheapest Car Insurance QuotesSavvy drivers who wish to find the cheapest car insurance quotes in the quickest amount of time perform their searches on carinsurancemegastore.co.uk. The website is now pleased to announce that it has increased its scope and power by ...
SAVE UP TO £657** ON YOUR CAR INSURANCE
With Leeds United Insurance Services Compare...
comparethemarket.com Launches New Web Design For Life Insurance Purchases
LONDON, January 19, 2012 /PRNewswire/ --Leading price comparison website comparethemarket.com has made it even simpler for its customers to purchase life insurance with the launch of a new and improved ...
Prestige Car Finance Offers Industry Predictions For 2012
The UK?s leading providers of customised car finance packages, Prestige, offers its predictions for the car finance industry for 2012 online. (PRWeb January 27, 2012) Read the full story at http://www.prweb.com/releases/2012/1/prweb9137771.htm
MoneySupermarket.com survey: Stoke Newington named as burglary capital of Britain
Apperley Bridge in West Yorkshire is runner-up in a table of 20 districts based on research into insurance claims. The leafy village came second only to Stoke Newington in north-east London.
|
