Holding The Wrong Form Of Car Insurance Could Well Cost You A Small Fortune
Car insurance is designed to protect the plan holder (usually the owner of the car) from financial loss as a result of a car accident. To receive this protection the plan holder has to pay a monthly premium which depends upon a number of factors such as the age of the driver, the type of vehicle, the driver’s record and location to name a few.
There are a number of different forms of car insurance to protect the plan holder from costs associated with damage to the car, damage to property and bodily harm of all persons involved in an automobile accident. The different types of insurance cover include:
Liability cover which pays for damages to others or their property as a consequence of an auto accident and that additionally covers any court costs involved. In the majority of states this is the absolute minimum required before you can take a car onto public roads.
Collision cover which will pay for damage caused to your own car in the event of a collision with another vehicle or object.
Comprehensive cover which will pay for various different forms of damage including fire, theft, malicious mischief and extreme weather conditions.
Medical cover which is designed to pay for any medical expenses for injuries resulting from an auto accident.
PIP (Personal Injury Protection) cover which pays for any medical expenses when an injury is sustained in an auto accident, regardless of who is at fault.
Uninsured and under-insured cover which will pay for damages sustained to you if the other driver involved in an accident does not carry sufficient insurance cover.
Every state has its own set of rules governing car insurance and some forms of car insurance cover are mandatory in a particular state while others will be optional. For example, some states only require you to carry liability insurance while other states require you to have PIP insurance cover.
There are also several states that are considered ‘no-fault’ states where insurance policy holders can recover financial losses from their own insurance company, irrespective of who is found to be at fault in an auto accident.
Ensure that you have the correct type of car insurance by letting the professionals provide you with a free and no-obligation cheap car insurance quote today.