If you are looking for an affordable auto insurance policy, be sure to look at the coverage provisions and policy exclusions. These will detail what the insurance policy covers and what the insurance company is responsible for. You should also read the legal responsibilities of both the insurance company and the policyholder. If you have any doubts, ask a trusted agent or representative for advice. Many insurance companies offer a no-fault system for resolving car insurance disputes.
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Uninsured motorist coverage
Depending on your state’s insurance requirements, according to car accident lawyers, uninsured motorist coverage on your auto policy may be mandatory or optional. It pays for the damages caused to your car and medical expenses if another driver doesn’t have enough insurance to pay for the full cost of their own injuries. Some states have a limit on this type of coverage, which can be as high as $300 per accident. However, it is worth the extra money if the other driver is at fault and the collision wasn’t your fault.
Comprehensive coverage
If you’re thinking about increasing your coverage on your auto insurance policy, you may be wondering what comprehensive coverage actually is. Essentially, comprehensive coverage pays for the repairs of your vehicle, not the other driver’s. It’s important to understand what this coverage does, too, and how it differs from collision coverage. Comprehensive coverage will also help you if you’re at fault in a car crash, but it won’t pay for the repairs of the other driver’s vehicle.
Collision coverage
When you are hit by another car in a single-vehicle accident, you will be required to pay for repairs or replace the car. Your liability coverage will cover the other driver’s expenses if they are at fault, but you will have to pay your deductible first. Collision coverage on auto insurance is designed to help you pay for the repairs and replacement of your vehicle. The benefits of collision insurance outweigh the disadvantages.
Usage-based insurance
Before technology made it possible to track mileage and location, insurance companies calculated rates based on past driving records and geographic locations. However, as technology continues to improve, insurers can now more accurately determine how much coverage a person needs. Some insurance companies are now selling insurance based on miles driven, a concept that is not without its critics. While driving less than 50 miles per week can save a driver up to 30 percent in premiums, this model can also increase the cost of insurance.
Umbrella policy
While liability insurance covers bodily injury and property damage, an umbrella policy protects your assets from the financial fallout from a lawsuit. While liability insurance only covers up to a certain limit, an umbrella policy can cover the remaining damages. This type of insurance is generally available from Travelers Insurance. A typical umbrella policy will cover $1 million or more. However, if you have extensive assets or are involved in many accidents, you may want to consider purchasing an umbrella policy.
