Car insurance provides protection for the policy holder (generally the owner of the vehicle) from financial loss as a result of a car accident. To benefit from this protection the policy holder pays a monthly premium which varies according to several factors like the driver's age, the type of vehicle, the driver's history and the driver's location to name a few.
There are currently several different types of car insurance to protect the policy holder against costs arising out of damage to the vehicle, damage to property and injury to persons involved in a vehicular accident. The various different types of cover include:
Liability cover which provides payment for damages to others or their property as a result of an auto accident and which also meets any court costs involved. In a lot of states this is the bare minimum required before you are permitted to take a car onto public roads.
Collision cover which is designed to pay for damage caused to your own car in a collision with another vehicle or other object.
Comprehensive cover which provides payment for various types of damage including theft, fire, malicious mischief and damage resulting from severe weather.
Medical cover which is designed to pay for any medical expenses for injuries resulting from an auto accident.
PIP (Personal Injury Protection) cover which pays for any medical expenses when injury is sustained in an automobile accident, regardless of who caused the accident.
Uninsured and under-insured cover which pays for damages sustained to you in the event that the other driver involved in an auto accident does not have insurance.
Every state makes its own rules governing car insurance and some types of cover will be mandatory in each state while others will be purely optional. For instance, some states only require you to have liability insurance while other states require you to have personal injury protection insurance cover.
There are also various states that are referred to as 'no-fault' states where insurance policy holders are able to recover financial losses from their own insurance company, regardless of who is deemed to be at fault in a car accident.
There are currently several different types of car insurance to protect the policy holder against costs arising out of damage to the vehicle, damage to property and injury to persons involved in a vehicular accident. The various different types of cover include:
Liability cover which provides payment for damages to others or their property as a result of an auto accident and which also meets any court costs involved. In a lot of states this is the bare minimum required before you are permitted to take a car onto public roads.
Collision cover which is designed to pay for damage caused to your own car in a collision with another vehicle or other object.
Comprehensive cover which provides payment for various types of damage including theft, fire, malicious mischief and damage resulting from severe weather.
Medical cover which is designed to pay for any medical expenses for injuries resulting from an auto accident.
PIP (Personal Injury Protection) cover which pays for any medical expenses when injury is sustained in an automobile accident, regardless of who caused the accident.
Uninsured and under-insured cover which pays for damages sustained to you in the event that the other driver involved in an auto accident does not have insurance.
Every state makes its own rules governing car insurance and some types of cover will be mandatory in each state while others will be purely optional. For instance, some states only require you to have liability insurance while other states require you to have personal injury protection insurance cover.
There are also various states that are referred to as 'no-fault' states where insurance policy holders are able to recover financial losses from their own insurance company, regardless of who is deemed to be at fault in a car accident.
