Auto Insurance & its Five Coverage Types

Travelling or commuting by car is not always safe as accidents and mishaps can

occur anytime –any day –even when you are careful and aware enough; especially

in United States –a car accident happens every 18 seconds. Hence, there is a need

to safeguard your life with Car insurance.

Auto insurance is the foundation of a potent pecuniary plan, and is the key to

protect yourself from financial losses resulting from an accident, in exchange for

your payment of a premium. Generally, car insurance policies include several

types of coverage for different situations and catastrophes, all of which may be

priced differently. Here are mentioned as well as discussed five types of auto

insurance coverage:

Bodily Injury Liability

This auto insurance coverage type protects you for pain and injury, medical

bills, lost wages, and also for funeral expenses –for those who got injured in

an accident where you were legally responsible. Moreover, in certain cases

where you want to defend yourself in a covered lawsuit, this coverage can

pay for the legal and court costs. This type of coverage is required in most

states.

Collision

The principle / concept of collision coverage is easy and understandable.

This type of coverage reimburses for any sort of damage to your car which

was the result of a collision with another vehicle. Not only when you are

the victim, but also when you are legally responsible for the accident –this

type of coverage will pay for the cost of fixing your car. Collision coverage

would be required especially when your automobile is financed.

Property Damage Liability

Property damage coverage allows you the sigh of relief when you caused an

accident –as this type of coverage pays for the repairs to another person’s

vehicle or property loss. Beyond bearing the cost to repair the other

person’s car, Property damage liability also covers repair costs of anything

you damage with your car, such as a fence, street lamp, or building etc.

Comprehensive Coverage

Comprehensive coverage pays for losses due to hazards and calamities

only. This may encompass the damages that are caused by the theft,

vandalism, fires, earthquakes and storms etc.. This coverage type is

optional in all states.

Uninsured and Underinsured Motorist Coverage

With Uninsured and Underinsured Motorist Coverage Policy –you along

with all other passengers present in your vehicle (who got injured in an

accident) would be protected if the accident is caused by an uninsured

motorist who legally responsible for your injuries. This policy pays for the

medical expenses too.

All sorts of insurance policies are protection; but when it comes to auto insurance

which is also known as car insurance or vehicle insurance, it becomes more

requisite and extremely essential –this is because in today’s scenario we spent

certain part of the time in cars and vehicles –for instance, in the morning and

evening, and whenever we have to go out from our edifices.

So, choose a reputable auto policy service such as Online Auto Insurance, Illinois

–to lead a safe life, and safeguard yourself from fiscal loss or property loss caused

by an accident, hazard, court issue or vehicle vandalism etc.