What is car insurance? A car insurance company is a group that offers auto insurance. Auto insurance is simply an amount of money that protects your car. It provides compensation in case of theft, fire, damage, and an assortment of other events. Car insurance also covers you in case of damage to property and other vehicles after car mishaps. It helps to save money by helping to reduce your financial risk of accidents and other unexpected events.
The way car insurance works is pretty simple. There are two parts to it. There is protection and liability. You purchase protection and pay a premium every month to protect yourself from damage and liability if something happens.
Bodily Injury Liability Coverages There are three major types of bodily injury liability coverages. They are physical damage liability coverages, personal injury liabilities, and property damage liabilities. The minimum amount of bodily injury liability coverages that you must have in order to legally drive a car in New York is $1 million. This is the minimum amount required in order to file a legal claim with the state. If you are ever involved in an accident in New York that is the fault of another person or automobile, then your minimum amount of bodily injury liability coverage will cover any legal claims you might have.
Property Damage Liabilities Property damage liability is provided coverage for damages to automobiles as well as any other property owned by the insured. This includes contents in your car such as jewelry, appliances, electronics, etc. It also includes any tents or cabins that you may have left in your car. Your insurance provides coverage for all of this as long as the other party does not suffer any damage or loss. It is important to remember that your coverage does not cover any damages that are caused by you as the insured.
Motorist Coverage Most states require motorist coverage. This type of coverage provides protection for damages to your vehicle in case you are found to be at fault in an accident. This is a comprehensive type of coverage. It also includes personal injury protection which pays medical expenses if you are injured due to the fault of the insured. The payouts for this coverage will be dependent on what the other party’s policy pays.
Medical Payments provides coverage for any medical expenses you might incur in the event you are injured or your vehicle is stolen. In the event that you are at fault in an accident, this portion of your insurance will pay for the medical care of the other party or their dependents. This portion will also provide coverage for any personal property that was damaged in the accident. Personal injury protections provided by liability insurance will also cover the other drivers or their passengers.
Bodily Injury and Damage Liability Insurance provides coverage for the other drivers or their passengers in the event you cause a bodily injury to someone else or your car is damaged. The liability portion of this portion will pay for the cost of the medical expenses and damages to the car. Property Damage is also included in bodily injury and liability insurance. This portion covers damages to your vehicle and also covers legal costs that are related to an automobile accident. If you are found at fault for causing an automobile accident, this portion of your policy will pay for the repairs to your car or other vehicle and also compensate you for any legal fees you may owe following the accident.
Each state has a minimum amount of financial protection that your insurance company must provide you with. For instance, in Michigan, your insurance company has to supply you with the maximum amount of financial protection required by law. This is called the personal injury protection or PIP. If you do not already have this minimum amount of financial protection, it is recommended that you purchase it before you apply for insurance. You will be glad you did.