Types Of Auto Insurance Coverage
When the first auto insurance coverage was purchased in 1898, there were more horses than cars. The less than 100 car owners on the streets at the time were mainly concerned with not causing damage to the horses that ruled the roads.
Today, automobiles include motor vehicles such as trucks, buses and motorcycles and rule the streets resulting in an increase to the motor vehicle accident statistics worldwide. Auto insurance coverage has become a much greater concern making it the most widely purchased of all types of property-casualty insurance.
For most people, a motor vehicle is probably one of the most expensive properties they will purchase. Having expensive property to maintain, it is not surprising that motor vehicle owners would like to make sure that they have a way of protecting their investment and they can cover the costs of maintaining the vehicle in case of vandalism, damage, or theft.
Aside from the costs of a damaged motor vehicle, people are also at risk of getting injured from motor vehicle accidents. In the present motor vehicle dependent world, almost everyone is at risk of getting involved in a motor vehicle accident, drivers, passengers and even bystanders alike. People are usually not prepared financially for injuries caused by these accidents. Having auto insurance can also cover these expenses. There is no one auto insurance coverage that will cover all your insurance needs. Chances are you may not even need to have all the types of auto insurance coverage. What is important is for you to know the basic types of auto insurance coverage in order for you to make a more intelligent decision as to what type to get for your vehicle. * The barest minimum insurance required in most countries is general liability. This covers damage or injury you may cause to other people involved during an auto accident. Collision is an incident which is commonly covered by an insurance policy. It covers damage to vehicles during an auto accident. * A comprehensive coverage covers other possible causes of damage to a vehicle that are not considered auto accidents, such as break-ins or theft, vandalism, damage due to natural calamities such as earthquakes and the like. * A medical payment insurance coverage offers a much higher coverage than general liability coverage and includes not only other people involved in the accident but also you, the driver, no matter who’s fault the accident was. It also covers you and in most cases your family from injuries from motor vehicle accidents involving other vehicles regardless if you were a passenger or a bystander. * Uninsured motorist (UM) or underinsured motorist (UIM) coverage makes sure that you are still covered by your own insurance in case you are involved in an auto accident where the other party has no insurance or does not have sufficient insurance to cover your expenses for damages and injuries. * There is also a new insurance system being adopted by some states and is slowly catching on called No-Fault Insurance. The objective of a No-Fault insurance is to avoid the standard practice of determining fault, which usually leads to legal proceeding or litigation, prior to determining claims. It does this by ensuring coverage regardless of who is at fault. The No-Fault insurance guarantees immediate coverage, without the need to go through lawyers, courts, lawsuits and other legal procedures. To find out more about auto insurance coverage, check out the many auto insurance websites and your state’s auto information service website.
Motor Vehicle Accident
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