Know your car insurance policy

Know your car insurance policy

Imagine you are stopped for exceeding the speed limit or worse involved in a fender bender. No matter the situation the state you live in requires that you have car insurance. Your car insurance policy is an agreement between you and the insurance company that protects you in the event of an accident. Upon payment of a premium, your car insurance provides coverage for property, liability and medical.

* Property coverage payments for theft and vandalism

* Liability coverage payments for property damage, bodily injury and your legal obligations to others

* Medical coverage payments for the treatment of injuries, convalescing and missed wages.

According to the Insurance Information Institute (III) most states are required to carry Bodily Injury Liability and Property Damage Liability. These coverages are significant as they provide payments for injuries, death and property of others.

* Personal Injury Protection (PIP): Coverage payments for injuries to you and passengers. Other related expenses including missed wages.

* Uninsured Motorist Coverage: Coverage payments if the other driver is uninsured or if the accident is a hit and run.

* Underinsured protection is also available to provide coverage when the other driver does have not enough car insurance when involved in an accident.

car insurance

The primarily required coverages provide protection for damages to vehicles and property for only for others. To protect your own vehicle there are common optional coverages of car insurance. But keep in mind these do not cover regular wear and mechanical use.

* Collision: Provides coverage when you have an accident with a car or object such as a median or tree. Rollovers and potholes are also covered.

* Comprehensive: Provides coverage for acts of nature such as hail, flood, fire and falling trees from a tornado. There is also coverage for damage caused by vandalism.

* Glass Protection: Supplemental glass coverage may be available for some car insurance policies for sunroofs, side and rear windows.

* Rental Reimbursement: Coverage for car rental expense in relation to coverage expenses in a car accident.

After reviewing the state requirements and the options available you have to acknowledge that insurance on your car is a must for you and your family. With the use of technology and increasing safety concerns on the road, you want to make sure that the policy you have provides the coverage and peace of mind that will not leave you bankrupt. What are the requirements in your state?

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