Car insurance protects the policy holder (commonly the owner or driver of the car) from financial loss in the event of a car accident. For this protection the plan holder pays a monthly premium which varies according to several factors like the driver’s age, the car in question, the driver’s record and the driver’s location to mention just a few.
There are a number of different types of car insurance to protect the policy holder from costs arising out of damage to the car, damage to property and bodily harm of all persons involved in an automobile accident. The different forms of insurance cover include:
Liability cover which pays for damages to other people or their property in the event of an auto accident and which also meets any court costs involved. In a number of states this is the absolute minimum of cover required before you are permitted to drive an automobile on public roads.
Collision cover which pays for damage caused to your vehicle in the event of a collision with another car or object.
Comprehensive cover which pays for several forms of damage including theft, fire, vandalism and extreme weather conditions.
Medical cover which provides payment for medical expenses for injuries resulting from an auto accident.
PIP (Personal Injury Protection) cover which will pay for medical expenses when an injury is sustained in an automobile accident, regardless of who is responsible for the accident.
Uninsured and under-insured cover which will pay for any damages which you sustain if the other driver involved in a car accident has no insurance.
Every state makes its own rules governing car insurance and some kinds of car insurance cover will be mandatory in a particular state while others are purely optional. Some states, for example, only require you to have liability cover while others insist upon PIP insurance cover.
In addition there are a number of states that are considered ‘no-fault’ states where policy holders are able to recover any financial losses from their own insurance company, irrespective of who is deemed to be at fault in a car accident.
Ensure that you have the right type of car insurance by letting the experts provide you with a free and no-obligation cheap car insurance quote today.