WHAT IS AUTO INSURANCE

The incsurance company covers all the financial damage in case of accident or theft as per your agreement, a contract between you and the insurance company is known as auto insurance. And you a premium in exchange .as per the outlined contract insurance company agrees to pay to you.

It covers the following :

MEDICAL:  

  • A AUTO INSURANCE COMPANY covers all medical expenses if you or your family members get injured during an accident in that vehicle. They cover all the expenses for treating your injuries to rehabilitation, even sometimes your wages lost during accident and funeral expenses.

PROPERTY: A 

  • AUTO INSURANCE COMPANY will be responsible for all the damage to your automobile as per the outlined contract.

LIABILITY:    

  • An AUTO INSURANCE COMPANY will take care of all your legal work and responsibilities in case of the bodily damage to any other person or his property.

 WHOM WILL AUTO INSURANCE COVER_____TERM AND CONDITIONS 

An auto insurance company cover you and your family members who are mentioned in your insurance policy. It will also cover the person who is not in your policy but driving your car with your consent. It will also take care of you if you are not driving your own car, but someone you know(only when you go with the person’s permission).

If you have personal auto 

insurance policy will only cover you when your driving for your work, driving to your workplace or going on a trip. It will not protect you if you use the automobile for the commercial purposes, i.e., for the delivery of a parcel or pizza delivery

According to personal 

auto insurance policy, the insurance company will not be responsible for damage to the vehicle and not cover any medical expenses if you use the car for picking and dropping peoples and use your vehicle for providing transportation using transportation providing services like Uber etc. However, 

some auto insurance companies are also providing supplemental insurance products, i.e. additional cost that provides insurance to the automobile owner providing transportation sharing services.

MEDICAL AND LIABILITY COVERAGE

The auto insurance policy is different for every state. Every state has it’s own requirements that you or any person lending vehicle from you, must fulfil those requirements. Almost every state have the following criteria that a car owner should full fill

  • PROPERTY DAMAGE LIABILITY:  Your auto insurance should refund any damage caused by you or the person driving your vehicle with your permission, to the other party’s vehicle or some other property like any building, utility pole or fence.
  • BODILY DAMAGE LIABILITY:  your auto insurance should also be responsible for covering up the expenses for the treatment of the injuries to any other person because of you or any other person driving your automobile with your consent.

Many states also require this in your insurance policy :

  • MEDICAL PAYMENTS PERSONAL INJURY PROTECTION (PIP):  Your auto insurance should be responsible for the medical expenses for the injuries to you and all the passengers travelling with you at that time.

UNINSURED MOTORIST COVERAGE:  This will refund you the expenses when the accident is caused by a driver who does not have any auto insurance policy or in the case of a hit-and-run. By buying underinsured motorist coverage, you will get paid 

  • even when the other driver involved in the accident does not have an adequate amount of money to spend.

I will advise you that you should buy the PIP and UNINSURED MOTORIST polices, even if these are optional in your state. These will provide you with better financial coverage.

As of 2018, there were over 273 million registered vehicles on the roads in the United States. Of those millions of registered vehicles, each year there are also millions of vehicle crashes. In 2018, there were over 34 thousand fatalities, about 1.8 million injuries and approximately five million car crashes which involved property damage.( https://www.statista.com/topics/3087/car-insurance-in-the-united-states/).

These facts show the damage happened due to the accidents. You can get a refund of the damage to your and other persons property damage if you have auto insurance. Also, the insurance company will take care of all your medical expense and the medical costs of your liabilities.

WHAT TYPE OF PROPERTY DAMAGE AUTO INSURANCE COVER 

An auto insurance 

basically covers the damage your car causes rather not the damage done to your vehicle during an accident. To make sure that it also covers your automobile, you should keep these optional coverages in your mind:

  • GLASS COVERAGE: It is expected that auto insurance companies cover glass damage during an incident. In glass damage, the damage to the windshield is most common. However, some auto insurance companies also cover non-deductible glass damage, including the glass of windows, sunproof glasses, and side mirrors. If your auto insurance policy does not cover this, you can also buy supplemental glass coverage and additional glass damage expenses. 
  • COMPREHENSIVE: It provides you with the refund if your automobile is stolen and or any damage to you car was done in incident other then collision such as fire, earthquake, flood or got damaged by falling rock or tree or in case of any other natural disaster.

COLLISION: The auto insurance company cover all type of damage to your vehicle, if you collide with another automobile or any other thing like a tree, building, fence or a 

utility pole etc. when you are at fault. The insurance policy will not cover mechanical failure or typical damage, i.e., normal scratches or glass damage in the collision coverage. You will be responsible for this.

WHY DO I SHOULD GET GAP INSURANCE AS WELL?

IN comprehensive and collision coverage, you will get only your vehicle’s market price at the time of the incident or refunding, not the price you paid for the car. You know that new vehicles devalue in the market very quickly. So there might be a gap between the price you pay for vehicle and the money you are getting from the auto insurance company. To cover up this gape, you should buy the gap insurance.