subject: Auto Insurance Basics [print this page] Auto insurance has many parts to itAuto insurance has many parts to it. Here are the more common parts and insurance coverage included in an auto insurance policy: Liability insurance coverage, collision/comprehensive coverage, uninsured drivers insurance coverage, medical coverage, and no-fault coverage.
Let's start with the liability coverage rates of auto insurance. Liability insurance means that the accident that is the drivers fault is covered under the auto insurance policy. The car and property damage done by the drivers fault car accident will be paid for by the auto insurance. Well, the agreed amount of money written in the auto insurance policy will be paid to the drivers. It is common to have an auto insurance deductible which means the drivers under the auto insurance policy are responsible for a certain amount of money and then the auto insurance company will pay a percentage of the rest or up to a certain amount of money. These amounts all depend upon the auto insurance policy quote and rates all outlined in the auto insurance policy. Because of the liability insurance part of auto insurance, auto insurance is required by law for any drivers owning and driving a car. So, all drivers must have auto insurance, in almost all states of the US.
The next part of auto insurance coverage that effects your policy rates is collision and/or comprehensive insurance coverage. The collision part of the auto insurance covers the drivers car in the case of the car hitting another car or another object that causes damage to the car. Comprehensive auto insurance would include coverage for damage done to a car by things other than the car running into something. Comprehensive insurance coverage includes insurance coverage for fire, theft, flood, storm, etc.
Uninsured drivers insurance coverage within an auto insurance policy makes sure that even if drivers get into an accident with other drivers who don't have the liability part of auto insurance, those drivers are still covered under their auto insurance policy. This part of auto insurance would also cover problems such as injuries that would occur if the auto insurance policy holder were riding in another drivers car and the car got into an accident. One more example of uninsured drivers insurance coverage under an auto insurance policy would be a hit/run car accident where no one knows who hit the car, but there is still damage to the car.
Auto insurance obviously should have some kind of medical insurance coverage due to the nature of car accidents. Usually the amount of money, the rates or quotes paid out by the auto insurance company for medical issues due to a car accident are a set amount and don't pay for the full amount of the medical expenses, but a good auto insurance policy should include some amount of money for medical expenses of the drivers and passengers involved in a car accident.
And finally, the no-fault auto insurance coverage part of an auto insurance policy would usually include some type of medical pay-out and a pay-out for any income loss due to problems incurred by a car accident, or missed work due to a car accident.
When you are in search for cheap auto insurance, make sure you consider the above auto insurance coverage options so that you're not just getting cheap quotes and auto insurance rates, but you're getting the auto insurance coverage you need too!
by: Mariano Nasir
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