Basic auto insurance policies in America
By: Jerry
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Do you know exactly what the car insurance or auto insurance means in America? Here you do not insure the car. Instead you insure the driver. For instance you have car insurance and that too from a reputed insurance company. Your spouse who drives the car is not covered by car insurance. If he or she commits an accident then insurance company will not cover the damages. The uncovered person who committed the accident shall be liable for all damages. Thus any car insurance or auto insurance in America relates to the person and not to the vehicle.
Basic auto insurance policy –
You get six types of coverage under the basic auto insurance policy in America. They are collision, comprehensive, liability for bodily injury, liability for property damage, medical expenses, and uninsured motorist. When you are at fault in the car or auto accident the collision coverage gives compensation for the damaged caused to your car. Such cases are that of a single accident or when your car strikes a stationery object. On the other hand there may be accidents without any collision and your car may get damaged. Comprehensive coverage that is applicable in most states and even for cheap California insurance covers damage caused to your car due to fire, theft, natural calamities or vandalism.
When you commit an accident in any capacity with your vehicle, you may cause bodily injury to others or damage the property of others. When you or someone who is covered as driver under your policy commits an accident causing death or injuries to someone, the coverage will provide you the claim made against you as well as the legal expenses incurred for settlement.
When the liability exceeds the insurance coverage -
Normally the insurance company will pay the damages and any claim made on you including the legal expenses incurred for the same. However if the liability is more than the value of the policy, you will have to pay the differential amount. The principle of coverage is the same in cases where you cause damage to property of others and is liable to pay the compensation for that which means if the liability exceeds coverage, you will have to pay the differential amount.
Two other types of compensation that you have to pay are expenses for treatment by the injured person and if you are covered by personal injury protection which is also called PIP then the insurance company will pay the amount. The limits are $5000 - $10000 in such cases. Even if the owner or operator of the car is not insured, other occupants of a covered car shall be eligible to get the insurance coverage under the uninsured motorist plan.
Autos are replaceable not human beings –
The basic auto insurance policy in America and such policies as the Texas auto insurance, Massachusetts auto insurance, cheap California auto insurance, Florida auto insurance, Illinois auto insurance, and Indiana auto insurance all follow the same policy of payment according to coverage. Any excess amount will be your sole liability. The only thing that you have to be really careful about is that in such a vast country like United States, the State laws vary largely and therefore the auto insurance requirements may also vary and a deal extremely suitable for Texas may not be as suitable for Florida or Illinois.
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