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Auto Insurance Coverage

Auto insurance coverage from the best companies and discount rate providers | Find out what auto insurance coverage carriers have to offer in your area directly from a list of approved insurers. What are the various types of auto insurance coverage and auto insurance coverage characteristics. Coverage is often described as either basic or standard:

Basic Coverage: Ranges from the lowest minimal amount of insurance required by law through higher dollar amounts. Basic coverage is liability only insurance. A certain minimum dollar amount of basic liability insurance is required in each state. The basic legal minimum liability auto insurance coverage may have dollar limits increased to provide better coverage deals (more financial protection) however, even an extended dollar limit of liability policy is still by definition - basic coverage.

auto insurance coverage characteristics

Basic auto insurance coverage is designed to protect you from the financial consequences of being sued or having a judgment made against you for causing accidental bodily injury to another motorist. This is referred to as:

1. bodily injury liability. Basic auto insurance coverage is also designed to provide you financial protection against any judgment that you caused damage to another's property, principally their vehicle. This is known as:

2. Property damage liability. The dollar "limit of liability" is the maximum amount which your insurer is liable to have to pay you in such case of a court judgment against you.

auto insurance coverage characteristics Your insurance company takes over your risk - in exchange for your payment of a premium. In most states the above two forms of auto insurance coverage are mandatory, that is you are legally required to have it, if you own and drive an automobile. Depending on which state you live in, there may also be a legal requirement for basic liability auto insurance coverage for:

3.1 Personal injury protection (PIP). This pays you for medical bills incurred by you, having yourself been injured in an accident. The above three are basic liability auto insurance coverage types, to be regarded as mandatory. Although each state differs, the dollar limits may be as low as, or as high as, for per person and per accident. You may raise these auto insurance coverage limits above the "as low as" state legal minimums to obtain more financial protection, however, this is still considered basic auto insurance coverage. Next we consider:

Standard Coverage: Standard coverage contains the above types of basic liability insurance, normally at better increased dollar limits, beyond the minimum amounts required by law. Thus, standard coverage takes care of the mandatory requirements at a higher level - it also goes on to include a range of further, optional auto insurance coverage. Optional coverages are not required by law and your policy need not contain them; however, the majority of people desire and require most optional auto insurance coverage. The reason is simple:

Basic Coverage is NOT concerned with the consequences of any damage caused to your vehicle howsoever. Standard Coverage, which is the typical offering from insurers consists of additional optional (not mandated) coverages to take care of this problem. Standard auto insurance coverage may also be referred to as "fully comprehensive coverage" or "full auto insurance coverage". It contains further:

3.2 Medical payments coverage (in some states replacing 3.1). Pays medical expenses if you and/or passengers are injured in an accident.

4.1 Un/underinsured motorist bodily injury coverage. If you the insured or passenger is injured in an accident caused by a driver with no, or too little auto insurance coverage; pays medical expenses.

4.2 Un/underinsured motorist property damage. Pays for damage to your vehicle/property. Un/underinsured coverage is either mandatory or optional, depending on your state of residence. Some states have a notable problem with non insured drivers.
5. Collision coverage. Pays for damages to your vehicle as a result of a collision with another auto or static object.
6. Comprehensive coverage. A specific coverage for your vehicle aka "other than collision". This auto insurance coverage is the one that covers theft (amongst other perils like fire damage and vandalism).
7. Towing and labor. In case you breakdown, this reimburses costs.
8. Vehicle rental cost. Reimburses you, where because of an insurance scenario, you needed to hire transport.


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