InsuranceLecturer — Auto insurance, as painful as it can be at times, is required by many states in United States, with the exception of New Hampshire, Tennessee and Wisconsin. It protects the insured against losses involving the use of an automobile.
Policies for auto insurance vary greatly. You can have a lot of coverage on your vehicle or as little as possible and depending on your situation you may be forced into having a particular type of coverage.
Liability coverage is basically the foundation of any auto insurance policy and like I said above, is required by most states. South Carolina and Virginia require drivers to register as uninsured if you choose to not have auto insurance.
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With this type of insurance, whenever you are at fault in any accident, your liability insurance will pay for any bodily injury (medical bills and lost wages) or property damage (repair or replacement of things you damaged other than your own car) caused to others by the accident which also includes your legal fees.
Collision and comprehensive coverage will pay to repair your vehicle. Generally you cannot collect anymore than the actual cash value for your car which is not the same as the car’s replacement cost. Collision coverage is usually the most expensive part of auto insurance.
If you choose to have your deductibles higher, they will lower your premium costs down. Keep in mind, however, that you must pay the deductible before the insurance company will input any money after an accident.
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Medical payments (MedPay) coverage will pay for your and your passengers medical expenses after an accident. These expenses can come from accidents while you’re driving a car, someone else’s car, and injuries you or your family members incur when you are pedestrians.
The coverage pay is regardless of whose fault it is, but if someone is liable the insurer will probably seek to regain coverage costs from that person.
Personal injury protection (PIP) and some broader “no-fault” coverage are pretty much expanded forms of medical payments protection. If you have a good health insurance plan there may be little or no need to buy anymore than the minimum PIP or MedPay coverages.
