Accidents happen and sometimes they are very costly and cause lots of physical and mental trauma. In such a situation, auto insurance protects you against financial loss. Auto insurance is a contract between you and the insurance company where you agree to pay the premium and the insurance company agrees to pay for your losses as defined in your policy. This insurance provides coverage on property, liability and medical conditions arising out of that accident:

Property coverage on your insurance pays for damage to or theft of your car.

Liability coverage pays for your legal responsibility to others, if they are injured or their property is damaged.

Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

There are optional coverages available like Rental Car after accident - This option allows you to be mobile if your car is under repairs or not driveable.

An auto insurance policy is required when you are financing your car. It is also an state requirement. However coverages required may vary from state to state.

Six basic coverages are as follows:

1. Bodily Injury Liability
2. Property Damage Liability
3. Collision
4. Comprehensive
5. Uninsured and Underinsured Motorist Coverage
6. Medical Payments

I will discuss each of these coverages in detail in forthcoming posts. Meanwhile if your auto insurance is up for renewal, do not hesitate to contact me or fill the comprehensive quote form to get a competitive and personalized quote from us.

This entry was posted on Monday, September 26th, 2005 at 10:00 pm and is filed under Insurance, Auto. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.