Better Decide Beforehand How Much Insurance Do I Need For My Car
Every car driver needs to have an auto insurance, to save him from financial crisis, in case of any occurrence of road accident. But it is not clear for many drivers, about the exact coverage he needs for his financial safety, while avoiding too much burden of expense on his pocket. There are many factors that should be weighed carefully, before deciding on this urgent matter ‘how much insurance do I need for my car’. Each car insurance policy is made of several components; each of their coverage needs to be calculated separately, to get the total cost of that auto insurance.
Individual policies constituting the auto insurance
Bodily injury liability (BIL) – This policy is meant to compensate the medical expenses of the injured people in an accident, when it has caused due to the fault of the insured driver. Usually, the coverage of this policy is described as 20/50 or 100/300 policy, where the first numbers indicate the maximum amount of money to be given for the treatment of a single injured person in the accident; while the second numbers denote the maximum amount of money that can be given by the insurance company, for the treatment of all the injured people of an accident.
Liability coverage – This special coverage is also meant for providing the required amount of money, for the medical treatment of the people, present in the other car with which the insured car had colluded. But this coverage do not provide compensation for the injury of the people, present in that insured car.
Property damage liability – This policy coverage is actually taken for compensating the damage done to the other vehicle that is involved in an accident, if the accident happens due to the sole fault of the insured driver. Hence, sometimes this coverage is included within the BIL coverage and may be written together as 20/50/10, where the third number indicates the amount of money to be given for the repair of the other damaged car.
Personal injury protection (PIP) – This policy typically covers the medical expenses of the treatment of insured driver and his injured co-passengers, riding in the same car. If the driver loses a number of days’ wages, due to his accidental injury; then the insurance company is liable to pay that amount of money too.
Uninsured or underinsured motorist coverage – This policy covers the damage caused due to the fault of an uninsured car, or if the insurance coverage of the responsible car is inadequate to meet the expenses needed for the repair of the car or the medical treatment of the insured driver and his passengers.
Collision coverage – This policy provides the expenses needed for the repair of the damages of the insured car, after colliding with any other vehicle.
Comprehensive coverage – If the insured car is stolen or damaged due to any other than cause, which is not a road accident; this special coverage compensate the loss of the insured driver and pays that money to him..
The extensive knowledge about these policy coverage will help the people to have their answer to their question of ‘how much insurance do I need for my car’, though the maximum and the minimum amounts of these coverage differ from state to state.
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