Understanding Car Insurance

Hello there, by reading this blog it looks like you could use some help understanding What types of insurance there are and what do they mean in laymen’s terms.

Collision - Collision coverage will pay for damages to your vehicle caused by a collision with another vehicle or object.

Comprehensive - Comprehensive coverage pays for loss or damage to the insured vehicle that doesn't occur while in an auto accident. For instants it will cover damages or loss due to fire, wind, hail, flood, vandalism or theft.

Liability - This type of coverage pays for accidental bodily injury and property damages to others. The kind of Injury damages it covers includes; medical expenses, pain and suffering and lost wages. Property damage- Property damage coverage Includes covering damaged Property and Automobiles. This coverage will also pay defense and court costs. Your local State law determines how much liability coverage you must purchase, but if you choose you can always get more coverage than your state requires. (Note; you can only use Liability insurance on an automotive that you own, not lease or finance)

Medical Coverage - Medical pays for Medical expenses regardless of who's at fault for the auto accident.

PIP - Personal Injury Protection (PIP) is required in more than 46 states but not all. This coverage pays medical expenses for the insured driver, regardless of fault for the auto accident, for treatment due to an auto accident.

Uninsured Motorist - This coverage pays your car's damages when an auto accident is caused by a driver who doesn't have liability insurance

Underinsured Motorist - Pays your car's damages when an auto accident is caused by someone who has insufficient liability insurance coverage.

Rental Reimbursement - This coverage will pay for a rental car if your car is damaged due to an auto accident. But this coverage often has a daily allowance for a rental car. So you still might have to end up paying some out of pocket money for a rental.

Most insurance policies now-a-day combine a number of these types of coverage’s listed above. One of The first step's you will want to take in choosing the insurance you want for your car is to know the local state laws. This will help tell you the minimum insurance that you need for your vehicle. You may always want to keep in mind that, just because your state may not require extensive insurance, extra coverage may be worth the extra few bucks a month. Because let’s face it if you are anything like me and millions of other American's, no one wants to be stuck with thousands of dollars worth of bills because of an auto accident. I Mean come on gas is already killing us! well I Hope this blog shed some light on this confusing mess! Also before you buy car insurance SHOP AROUND it may take you sometime but you can always use some extra money, and at the same time keep good quaility car insurance. Thanks for reading this blog and please check out my other blog on helping you train that puppy of yours.