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.
|
Honda changes Fit bumpers to earn 'Acceptable' rating
Honda is going to change the front bumpers on 12,000 Honda Fit subcompact cars so that they match those on a car that just earned a "Top Safety Pick" rating from the Insurance Institute for Highway Safety.
Honda changes Fit bumpers after crash tests
Honda is going to change the front bumpers on 12,000 Honda Fit subcompact cars so that they match those on a car that just earned a "Top Safety Pick" rating from the Insurance Institute for Highway Safety.
Honda will fix Fits after crash test prompts redesign of bumper
Honda is going to replace the front bumpers on about 12,000 Fits it has already sold because the small car scored poorly in a key crash test.
It's All About The Numbers: Why Credit Is Important--to Your Insurance, And Your Life
A good credit history can result in getting that dream job, lower interest rates on car loans and mortgages, and better rates on your insurance, according to the Insurance Information Institute (I.I.I.). With a solid credit rating in hot markets like Boston, New York City and Seattle, renters will have an easier time finding an apartment and homebuyers may be the first to view properties, giving ...
L?olivier Assurances Selects Guidewire Products for Underwriting, Policy Administration, Claims Management, and Billing
Guidewire Software, Inc. , a provider of software products to Property/Casualty insurers, today announced that L?olivier Assurances, the French subsidiary of Admi
IIHS 2015 All New Chrysler 200 Earns Top Safety Pick
ARLINGTON, Va. August 12, 2014; The redesigned 2015 Chrysler 200 , a midsize moderately priced car, earns the top rating of good in the Insurance Institute for Highway Safety's small overlap front crash test, a step up from the previous generation's rating of acceptable.
Honda gives owners 'Acceptable' bumper
After a less-than-stellar crash test performance, Honda will swap out bumper beams on owners' Fits.
Car of the week: August 28th - Mini Hatch
Available from:AGMC Dubai: Tel: 04 454 1020Abu Dhabi Motors Abu Dhabi: Tel: 02 507 5800
Will Filing An Insurance Claim Raise Your Rates?
An accident can mean higher insurance costs - even if it wasn't your fault.
Attorney David Bullard has Achieved the AV Preeminent® Rating - the Highest Possible Rating from Martindale-Hubbell®
MACON, Ga., Sept. 2, 2014 /PRNewswire-USNewswire/ -- Martindale-Hubbell® has confirmed that attorney David Bullard still maintains the AV Preeminent Rating, Martindale-Hubbell's highest possible rating for both ethical standards and legal ability, even after first achieving this rating in 2014. For more than 130 years, lawyers have relied on the Martindale-Hubbell AV Preeminent® rating while ...
|
