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 pays for damages to other people or to their property in the event of a car accident and which additionally meets any court costs involved. In many states this is the bare minimum of cover required before you may drive a car on public roads.
Collision cover which provides payment for damage caused to your vehicle in the event of a collision with another vehicle or object.
Comprehensive cover which will pay for several types of damage including fire, theft, malicious mischief and damage resulting from severe weather.
Medical cover which pays for any medical expenses for injuries sustained in an automobile 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 provides payment for any damages sustained to you in the event that the other driver involved in a car accident is uninsured.
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.
In addition there are several states that are called 'no-fault' states in which insurance policy holders can recover any financial losses from their own insurer, regardless of who is found to be at fault in an automobile 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 pays for damages to other people or to their property in the event of a car accident and which additionally meets any court costs involved. In many states this is the bare minimum of cover required before you may drive a car on public roads.
Collision cover which provides payment for damage caused to your vehicle in the event of a collision with another vehicle or object.
Comprehensive cover which will pay for several types of damage including fire, theft, malicious mischief and damage resulting from severe weather.
Medical cover which pays for any medical expenses for injuries sustained in an automobile 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 provides payment for any damages sustained to you in the event that the other driver involved in a car accident is uninsured.
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.
In addition there are several states that are called 'no-fault' states in which insurance policy holders can recover any financial losses from their own insurer, regardless of who is found to be at fault in an automobile accident.
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