Automobile insurance standard coverage is the basic amount of insurance coverage that is required by law in order for an individual to legally operate a motorized vehicle. You can simply it even further with the blanket statement as being the mandatory amount of auto insurance coverage a driver must possess.
The most important part of anyone’s car insurance policy is the liability coverage. This coverage protects the consumer against the cost of damages and injury that is a direct result of that same consumer if they are the cause of a vehicular accident. For instance if you’re driving down the road and accidentally run into another person’s car this insurance coverage will pay for the damages that result due to the accident.
The liability coverage is further broken down into two subsections. The first is bodily injury liability. This covers and personal injury inflicted by yourself upon others during a car accident. The second subsection is property damage liability. As you may have guessed this is your insurance protection against any damage you cause to another individuals property, usually their car.
Although coverage amounts can vary it is generally suggested that a good baseline of automobile insurance standard coverage should be 100/300/100. This can be read as $100,000 worth of bodily injury caused to another person, $300,000 towards bodily injuries for everyone involved and $100,000 for property damage. With rising medical costs and outrageous car prices this would be the absolute minimum insurance protection I would personally carry in my automobile insurance standard coverage. However, each state is different and you will need to check to see what their car insurance laws constitute as a minimum coverage amount.
If you are in a financial crunch and need a way to save money on your insurance policy try to avoid retaining only the minimum amount of coverage required by your state. Instead try raising your deductible amount (the amount you pay first in the event of an accident before your insurance company kicks in with its payment). You will find that by raising the amount $500 or $750 will significantly lower the monthly costs of your automobile insurance standard coverage.
Two other policies that exist include the medical payments insurance which provides for the immediate treatment of injuries sustained during an auto accident. Anyone riding in your vehicle to include yourself is covered, regardless of who is at fault for the accident. The second policy is commonly known as PIP or personal injury protection, is similar to medical payments coverage, but usually provides broader coverage. Many PIP policies provide compensation for lost wages, funeral expenses, and pain and suffering. Again you will need to check with your state insurance laws for further clarification if you are required to have this additional coverage.
Finally as a safety measure against law breaking individuals who illegally drive without insurance there is uninsured motorist insurance when the other driver has no liability coverage and underinsured motorist coverage which pays for the cost of your injuries that exceed the other driver’s coverage maximum. As before with the PIP coverage you will need to make sure whether or not your particular state requires these forms of coverage as part of their automobile insurance standard coverage.
Injury Liability, Insurance Protection, Minimum Coverage
Unfair, you say, but that’s the rule. Even if it’s your friend’s fault that your car gets damaged, you’ll have to pay for it by filing a claim, paying deductibles. Your rates will increase too. You won’t be held liable only if your friend didn’t have your permission when he took your car. And worse, if he is uninsured and causes damage that exceeds your policy’s limits, those who are injured have the right to make you pay for medical and property-damage expenses. But of course it’s your choice: if you really trust that person, why not? But to prevent a major headache later on, don’t lend that car!
The new offers of pay as you drive was conjured up to get more people to obtain ample insurance as people try to skimp on them due to the current recession that has become a true headache for lawmakers and insurance firms alike. When the going gets tough, auto insurance is one of the first things that gets overstepped, put back against other pressing costs such as groceries and of course the mortgage payments.
People have been risking more and more injuries that will have to be paid out of their pockets as well as risk jail time and hefty fines when and if they do get caught without ample auto insurance. You don;t really need the most expensive packages being offered, the best thing is to get hold of the latest laws that specifies the most basic needs to protect you and your passengers. Pay as you drive allows you to benefit from changing driving habits due to higher gas prices and other changing factors that makes insurance more affordable.
Check with your local insurance firms and the local DMV for the most affordable packages that would have minimal cost yet packs enough protection for you, your automobile and others who may fall victim to an accident which is one of the most uncertain events in ones life.
As with any case concerning health, with auto insurance, your priority should always be the welfare of all people involved irregardless of who is at fault. The auto is covered by the insurance policy (if you do have insurance) as well as most of the early costs that can be incurred in the accident and the immediate aftermath. More serious accidents will surely get the involvement of the police but minor fender-benders can be resolved between the two drivers concerned. In some states, the police should be informed of any accident where damage is estimated to exceed a certain limit as defined by law or if somebody has been hurt as a result of the accident, may they be a passenger, driver or innocent bystander who was hit and suffered injury.
If you are called by police at the scene, be sure to provide all relevant information that is asked of you and try to avoid beating around the bush in cases of any underlying condition (missing, suspended or revoked license) for any lies noted by police will be used against you should you be subject to the courts. Admit fault if necessary and state the full facts, but one thing, be sure the person you are talking to is an investigator and not somebody from the opposite party’s group or representatives, you could end up incriminating yourself. Inform the agent of the incident
With the tons of advertising from companies online and other sources, it can sometimes be problematic to know which type of insurance you need or how much coverage you do you really need. First of all, everything changes from state to state as to the amount of insurance you need and the types that are required by law. This also varies from country to country as many know, but for this purpose, we would discuss the needs for people who reside in the US. One of the best sources of information on insurance and the many types are the online web sites the many related government offices have. Another good source is the Insurance Information Institute which offers information on insurance from the basics to the more advanced sides of the law in relation to insurance coverage.
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Optional Bodily injury, this is additional cover for the first mandatory area of cover that extends your coverage to the whole of the United States. Medical Payments is another option you can purchase that reimburses all medical expenses for all who were in the vehicle whoever may be at fault during an accident. Collision cover pays for damage to your vehicle less any deductible specified in the policy. You can get additional premium called a Waiver of Deductible where you don’t have to pay for the deductible if the driver who crashed into your car is identifiable (he pays for the deductible). Limited Collision coverage is a collision plan that pays for the damage to your car if your are no more than half responsible for the accident (both drivers are at fault) and the owner of the other vehicle is identifiable.
Additional Cover, Optional Cover
The new offers of pay as you drive was conjured up to get more people to obtain ample insurance as people try to skimp on them due to the current recession that has become a true headache for lawmakers and insurance firms alike. When the going gets tough, auto insurance is one of the first things that gets overstepped, put back against other pressing costs such as groceries and of course the mortgage payments.
Read the rest of this entry
The ability of an auto owner to get a lower insurance rate greatly depends on how much a risk you are determined to be by the insurance firm that takes on your application. Insurance forms as of last year have been given free range on the pricing of their packages to allow better competition resulting in lower rates. Having free-range over their prices doesn’t mean they are out of regulation for all their rates are still approved by the Insurance regulatory body for them to be allowed to continue selling new products or revised prices. To ensure you are getting competitive rates, canvass on more than one occasion for the same package with different providers to get the best deals. Maintain your vehicle properly so they break down less, it also helps prevent accidents that can lower premiums in the long run.
As with any insurance policy, there are add-on’s and auto insurance is one of those areas where one can save quite a sum of money if analyzed and discussed properly with your insurer. There are however four mandatory areas of cover that should be purchased to avoid any penalties in case of any accidents. They are; Bodily injury to others, Personal Injury Protection, Bodily Injury Caused by Uninsured Auto and Damage to Someone Else’s Property. The first may protect you from liability in case of injury or death of others while you are operating your vehicle. The next area of cover, Personal Injury Protection for your medical bills, replacement services and a certain percentage of any lost wages that can be caused by injury from an auto accident.
Compulsory Coverage, medical coverage, PIP
As with any case concerning health, with auto insurance, your priority should always be the welfare of all people involved irregardless of who is at fault. The auto is covered by the insurance policy (if you do have insurance) as well as most of the early costs that can be incurred in the accident and the immediate aftermath. More serious accidents will surely get the involvement of the police but minor fender-benders can be resolved between the two drivers concerned. In some states, the police should be informed of any accident where damage is estimated to exceed a certain limit as defined by law or if somebody has been hurt as a result of the accident, may they be a passenger, driver or innocent bystander who was hit and suffered injury.
Read the rest of this entry
