AUTO Insurance Policy
Understanding Auto Insurance
Since most U.S. states require the operators of motor vehicles to carry at least liability coverage, statistical estimates put uninsured drivers at 16%. That means approximately 160,000,000 motorists are named on these insurance policies.
What is Auto Insurance
Auto Insurance was created to protect individuals from catastrophic financial loss due to an accident while operating a motor vehicle. Most U.S. states require the operators of motor vehicles to carry at least liability coverage, which is purchased by the licensed driver. There are two primary protections offered by insurance companies: bodily injury or death, and property damage.
Bodily Injury Coverage
The bodily injury portion of the policy is designed to cover liability associated with the injuries to third parties in case of an auto accident. There is also Uninsured Motorist Bodily Injury, which covers the driver in case the at fault driver has no liability insurance.
Property Damage Coverage
This insurance coverage is used to protect the properties of other individuals in case of an accident. That would include damage to another party's car, personal property or real estate property.
Other Types of Coverage
- Collision - Covers damage to the insured's vehicle
- Comprehensive - Covers the insured's car from theft and non-accident related damage
- Personal Injury - Covers the medical/funeral expense for the insured, passengers or third parties
In order to determine the right types and limits of insurance needed, each individual needs to first be sure to comply with state laws, then determine the extent of protection needed and desired, according to their individual budget.