Monday, November 4, 2013

Insurance Policy Basics

When you get an auto insurance policy, there are some basics you should pay attention to. Here is an article by Vinay Khanna about those basics.

What Are Basics in Auto Insurance Policies?

Selection of an auto insurance policy that covers all the needs of yourself and other family members is very important. You should know the basics of auto insurance to choose the right policy with adequate coverages.

Auto Insurance

Auto insurance is a protection if you are the cause of injuries to others in an auto accident or you damage the property of others. The auto insurance also offers protection of there is a theft of your car or the car gets damaged in an accident. You would have to pay a fixed amount every month for the auto insurance coverage, which is termed as premium or deductible by the insurance companies. The terms of the car insurance policy would decide which aspects the insurance company would cover or would not cover.

What are Standard Auto Insurance Coverages?

Each state in the United States of America has its own minimum limits on car insurance coverage. You have to find out the law of your state to obtain the correct minimum coverages. For example, in the state of Idaho, the minimum coverage is $25,000 for injury or death of one person, $50,000 for injury or death to more than a single person, and $15,000 for property damage. These three coverage limits are compulsory in Idaho for all drivers when they buy a car insurance policy. You should carry the proof of having a valid car insurance whenever you drive. If the authorities are not able to obtain proof of insurance when you are driving, the fine for first offense would be $75. Subsequent convictions could result in fine up to $1,000 and/or prison sentence.

Other Types of Car Insurance Coverages

Apart from the above basic minimum coverage limits, it is advisable to have a few other coverages also for complete protection of yourself, your family members, and your vehicle, if an accident occurs. The most common coverages are collision coverage, comprehensive coverage, medical payments coverage, and uninsured or underinsured motorist injury coverage.

Collision coverage would offer protection for the damage to your vehicle if you hit another car or object. Comprehensive coverage would pay for damages to your car by causes like fire, hurricanes, vandalism, and theft of your car. Medical payments coverage would provide cover to you, your family members, and the passengers in your car, if an auto accident occurs. You could receive reimbursement of medical expenses incurred for injuries due to that accident. You would receive coverage for medical treatment even if you get hit by another vehicle as a pedestrian.

The uninsured or underinsured motorist coverage would help you if the other driver involved in the accident does not have insurance coverage or if the coverage of that driver is inadequate. All these coverages would result in your paying extra deductibles for each type of coverage based on the coverage amounts.

When you opt for Idaho auto insurance, you should consider not only the statutory minimum coverage limits of the state but also purchase additional coverages for complete protection.

Source: EzineArticles.com.

Thank you Vinay! That article definitely helped many people.

Nadav

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