Personal auto insurance helps you drive peacefully and protects
you from the financial loss in case of an accident. It is an agreement
between the insurance company and the insurer who pays the premium for
the future losses as per the policy. Personal auto insurance provides
property, medical, and liability insurance
.
Property coverage pays
for the damage or theft of your car, medical covers the costs of
treating injuries. While, liability coverage pays for the bodily injury
or property damage. The main purpose of the insurance policy covering
loss of an accident whether or not caused by you.
Why Do You Need Personal Auto Insurance?
Issuance
of personal auto insurance is mandatory in almost every State. If
drivers do not have this type of policy they are liable to pay fines.
This policy saves you from getting bankrupt and minimizes the risk of
losses.
Fundamental Coverage by Personal Auto Insurance
Personal auto insurance mainly covers six basic coverage areas.
1. Bodily Injury Liability
This
type of coverage applies when you or the designated driver injures
someone else. It is necessary to have enough liability coverage in this
case because the severity of the accident may vary. You should consider
more than the minimum requirement for this type of insurance.
2. Property Damage Liability
This
liability grants coverage for the damage caused to someone else's
property by you or your designated driver. The property can include
cars, lamp posts, fences, buildings, billboards, or any structures your
car hits.
3. Personal Injury Protection
This type of
coverage aids you with the treatment of injuries to the designated
drivers or passengers. It covers the medical costs, lost wages and even
funeral costs.
4. Collision
This coverage pays for the
damages caused to your car with the collision of another car, or any
other object. It could also include any potholes or anything on the
road. This type of coverage is usually sold with a deductible under the
range of $250 - $1000. The premium depends upon the deductible. The
higher the deductible, the lower the premium.
5. Uninsured Coverage
This
type of liability coverage will compensate you or your designated
driver if they get hit by an uninsured or hit-and-run driver.
6. Comprehensive
This
type of coverage reimburses you for losses because of theft, damage or
anything that is other than collision with a car or object which may
include, fire, earthquake, missiles, hail, flood, or animals on road.
This is also sold with a deductible. You can keep your deductible high
to lower your premium.