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.
|
2016 Miata Already Social Networking; A Mustang Auction
The 2016 Mazda Miata gets a ton of buzz on social media; Ford prepares to put the last of its limited edition Mustangs on the auction block; and the self-driving car saga continues.
No. 17 Virginia Tech suffers demoralizing letdown in 28-21 loss to East Carolina
BLACKSBURG ? All of the painful lessons about learning how to handle prosperity were supposed to have sunk in by now, but Virginia Tech still hasn't figured it out.
Windows to New Worlds
After 17 years of planning, fundraising, designing and building, the South Carolina State Museum?s new Windows To New Worlds project officially opens on Aug. 16. It includes a planetarium, 4D theater, observatory and an exciting and collaborative approach to education that can reach every school and give every student a chance to reach for the stars.
Warranty
Durhl Caussey writes a car column read around the world. He may be reached at this paper or dcaussey@sbcglobal.net. ]]> http://www.theepochtimes.com/n3/928813-2015-gmc-yukon-denali-4wd/feed/ 0 http://www.theepochtimes.com/n3/928829-2014-bmw-535d-bmw-diesel-done-right/ http://www.theepochtimes.com/n3/928829-2014-bmw-535d-bmw-diesel-done-right/#comments Tue, 02 Sep 2014 01:24:09 +0000 Jim ...
Louisiana Headlines
Sexual assault victims in East Baton Rouge Parish for years have gone to local hospitals for treatment and to be examined for possible physical evidence from an attack. But officials with the East Baton Rouge...
Auto news & reviews on saftey trends, new models and auto shows - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports
Ford has revealed its first right-hand-drive Mustang, one of a handful of prototype versions that will be used for calibration testing in a handful of markets.
Court listings: Find out who has been sentenced in North Devon 22/08/14, 26/08/14, 29/08/14, 02/09/14
See justice served in North Devon. Richard Lloyd, 40, of Rackfield Court, Barnstaple, was given a 12-month conditional discharge and ordered to pay £15 after pleading guilty to stealing two candles worth £39.98 from Clinton Cards.
Community Calendar
Submit your event at least two weeks in advance by going to events.savannahnow.com. You can also mail to Community Calendar, P.O. Box 1088, Savannah, GA 31402. Announcements are printed daily in the Accent section as space allows.
4-year-old boy struck by tombstone still critical, ruled accidental injury
Colonie Investigators have ruled out criminality in the case of a large tombstone that fell on and critically injured a 4-year-old boy as he and his 2-year-old brother walked a short distance behind their mother and adult family members at Albany Rural Cemetery Sunday. "Nothing here is intentional or criminal," said Colonie Police Lt. Robert Winn. "Whatever took place is a tragic accident. " The ...
West Volusia Calendar of Events: Sept. 13-20, 2014
Saturday, Sept. 13 Friends of the Astor Library Book and Yard Sale 8 a.m.-noon at the Astor Public Library, 54905 Alco Road. Proceeds will help support the library and the children?s programs. Call 352-759-9913. Farmers Market 8 a.m.-1 p.m. at Gateway Center for the Arts, 880 North U.S. Highway ...
|
