subject: Some Definitions You Should Know Before Selecting Car Insurance [print this page] Around the driving world, most countries, states and provinces require vehicle owners and drivers to purchase vehicle liability insurance. The major types of car insurance include liability and comprehensive. Uninsured vehicle or driver insurance is another specific version of insurance protection for the victim of the accident. Even though the purchase of comprehensive policies are not required by law, with few exceptions, but it can be prudent to add comprehensive coverage to your auto policy.
If you cause an accident in your vehicle, liability insurance protects you for at least a portion of the costs that result to the other vehicle and driver. Most areas require a mandated minimum amount of liability coverage that must be purchased. The minimum can be increased by the amount of coverage that you want to purchase.
Minimum liability personal injury coverage levels are typically described as the amount paid for one victim and the maximum amount paid for one accident. A single victim in an accident would be paid up to $25,000 for injuries. If there were four victims in the accident, one individual could receive up to $25,000 under the coverage. Victims two through four could receive up to a total of $25,000.
Liability insurance coverage is usually required for personal injury protection and for property damage liability. Personal injury protection is to pay for medical and hospital expenses, time lost from work and even pain and suffering costs. These payments are made to the other driver--not for personal medical costs.
In addition to personal liability, you must purchase property damage liability coverage in most areas. This insurance coverage is intended to pay for damages the at-fault driver's vehicle causes to the other vehicle or to property. As with personal injury liability, the coverage is for the other party, not the policy holder.
Another type of vehicle insurance is comprehensive. This coverage is helpful for the at-fault driver or for a victim of a one-car accident. Many individuals drop comprehensive coverage for older vehicles or for vehicles that are paid off. A lender for the automobile often requires that you carry comprehensive insurance coverage.
Some car insurance statutes require purchase of uninsured motorist insurance. If your vehicle or you are injured by another driver who is not insured, this type of policy protects you. Before purchasing insurance, determine the needed coverage level and then search for the best price.
by: Kenya Scherrer
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