If a vehicle is involved in a collision resulting in property or physical damages vehicle insurance is designed to cover risk of financial liability or the loss of a motor vehicle the owner may face. In some states a motor vehicle owners required carry some minimum level of liability insurance. There are some states that do not require the vehicle owner to carry car insurance; an uninsured motor vehicle fee may be paid to the state like in Virginia.
In New Hampshire, and Mississippi vehicle owners are given the option to post cash bonds, typically insurers are paid a monthly fee, often called an insurance premium by a motor vehicle owner. This insurance premium is usually determined by a variety of factors including the type of covered vehicle, the age and gender of any covered drivers, their driving history, and the location where the vehicle is primarily driven and stored. In the event of a traffic collision as proof of insurance an insurance card for the particular coverage term is provided by Insurance companies to a motor vehicle owner and this card is to be kept in the vehicle.
Buying car insurance include the following types of covers in which l am going to explain the important covers and just listing the other covers because of the small room l have here.
Coverage is sometimes seen as 20/40/15 or 100/300/100 where first two numbers seen are for medical coverage. For instance on the 100/300 case the policy will pay $100,000 per person up to $300,000 total for all people and the last number covers property damage. The other person’s vehicle or anything that you hit and damage as a result of the accident can be covered by this property damage.
Sometimes known as Casualty insurance Liability coverage is offered for bodily injury (BI) or property damage (PD) for which the insured driver is said to be responsible. The amount of coverage offered (a fixed amount of money) will differ from jurisdiction to jurisdiction. The insured can usually increase the coverage (prior to a loss) for an additional charge whatever the minimum. In some states it is illegal to operate a motor vehicle that does not have liability insurance coverage.
No-fault Insurance which is also known as Personal Injury Protection (PIP) is a coverage that says rather than go to court and try to prove that the other party was at fault if you’re involved in an accident, you can claim (up to certain limits) from your own insurance company for personal injury sustained in an accident. PIP insurance usually covers bodily injury only and not vehicle damage and it is compulsory. In states without a no-fault law, the victim files a claim against the other driver and is paid only if it can be proved that the other driver was responsible for the accident.
PIP MEDICAL EXPENSES INSURANCE WHEN YOU ARE IN A CAR
This coverage covers for medical expenses only. Irrespective of fault it pays the medical expenses of anyone injured when travelling in your car. It may also pay your medical bills when you or your family members are travelling in someone else’s car, or if you’re hit by a car while walking but this depends on your policy.
Below are other insurance covers but l will not be going in detail because of the very different conditions that they provide for clients.
- Catastrophic Medical Expenses Insurance
- Uninsured Motorist Insurance
- Underinsured Motorist Insurance
- Collision Insurance
- Comprehensive Insurance
- Miscellaneous Extra Insurance