Type of vehicle insurence. in-a-car-insurance-policy-collision-insurance-covers-weegy.
you're almost guaranteed to hear an
advertisement for car insurance at many
places.
but when it comes to buying or choosing the
right insurance what do you really need.
your first step in finding the right policy
is to make sure you meet the state's
minimum insurance requirements.
if you don't know your state's requirements
visit the insurance commissioners
website for your state, or call their
office they're happy to help you get
started but what about all the types of
coverage and services that are offered.
what do you need to really be protected
on the road an easy way to think about
auto coverage is in terms of to whom the
benefits will be paid personal coverage
pays you as the vehicles owner liability
coverage pays others for damages you're
legally responsible for as the result of
an accident.
first we'll focus on coverages that
benefit you as the policyholder. there
are two types of physical damage
coverage available with car.
1. insurance policies collision coverage.
2. comprehensive coverage collision.
comprehensive coverage are similar that
they both cover the loss related to your
vehicle.
1. insurance policies collision coverage.
however collision insurance specifically
covers damage caused by accidents with
other vehicles and stationary objects
like trees or road signs even potholes.
it is important to remember that
collision coverage only handles repair
and replacement costs up to your
vehicle's actual cash value your
vehicles actual cash value is not how
much you paid for it. or still owe the
loan instead the actual cash value is
the vehicle's current value considering.
factors like it's age mileage and
condition with this coverage you'll be
asked to select a deductible. the
deductible is the amount you'll be
responsible for paying for each covered
loss but more about deductibles in a
moment.
2. comprehensive coverage collision.
the second type of damage coverage for
your vehicle is comprehensive. this
covers damages your vehicle incurs from
non accident events like weather, wind
hail or ice as well as theft and
vandalism.
two other types of personal
coverage you should consider are
(|). rental reimbursement.
(||). gap insurance.
rental reimbursement pays for a rental
vehicle, if your car is not drivable as the
result of a cupboard or insured loss it
is optional and not required as part of
your insurance policy. however it can be
beneficial if your car must be in the
repair shop for several days and if you
do not have access to another vehicle.
if your vehicle is financed you may also
want to consider gap insurance
this pays the difference between the
actual cash value of a vehicle and the
balance still owed to a lien holder or
in a car loan or lease program.
it helps prevent you from being upside down
on your loan or owing the bank more than
the actual cash value in the result of a
total loss situation.
however before you purchase this coverage
from your insurance agent be sure to check
your loan or financing agreement. many times
gap insurance is a part of a loan
agreement when you purchase the vehicle.
however double check to make sure you
don't already have gap insurance now.
let's talk about deductibles basically a
deductible is the amount of money you
must pay when making a claim on your
policy. before your insurance company
begins paying additional costs for
example suppose you have a policy with a
$500 deductible and you have an accident
that causes $3,000 in damages to your
vehicle. you are responsible for the
first 500 dollars of repairs the
insurance company pays the remaining
2,500 dollars of repairs the amount of
the deductible you choose makes a
difference in the amount of your
insurance premium a low deductible means
a higher premium a high deductible means
a lower premium.
however it is possible
that should you be in an accident your
deductible might not fit your budget. if
your budget allows for a high
out-of-pocket expense, choosing a high
deductible might be worth while for the
lower premium. however if a high
deductible is not in your budget a
higher premium may be best for you.
all of us on the road at some point have
worried about the dangers of an
uninsured or underinsured driver causing
an accident that's why uninsured
motorist coverage can be a financial
lifesaver. uninsured or underinsured
motorist coverage provides reimbursement
if you are involved in an accident with
a driver who doesn't have sufficient or
any liability insurance without this
type of coverage, you could be stuck with
a hefty repair bill and medical bills
you'd.
if the accident was not your fault
the key with this coverage is that it
pays damages that are not covered under
the physical damage coverage of your
policy and its limits with medical
payment coverage with an increase in
uninsured drivers. over the last few
years this is a critical coverage to
consider adding to any insurance policy
property damage insurance covers the
cost of repairs for damage done to
another person's property in an accident. in
a car insurance policy weegy
it also covers court costs and legal
expenses United States law requires
drivers to carry at least $5,000
property damage coverage per accident.
however the minimum in
States is higher remember the minimum
amount most likely will not cover all
the expenses in a serious accident most
car insurance professionals recommend at
least $50,000 of property damage
liability insurance. many consider one
hundred thousand dollars per accident.
the ideal amount in 2013 the average
price of a car was $31,000 you can see
how quickly damages can add up if
multiple vehicles are involved. we don't
have time to cover all the different.
types of insurance available however we
hope this has helped explain some of the
more common types of insurance you can
get for your automobile if you have any
more questions we're always here to help
drive safely.in-a-car-insurance-policy-
collision-insurance-covers-weegy or in a car
insurance policy weegy
FAQs
What is the collision coverage of insurance?
Ans: this Collision coverage in vehicle insurence helps pay to repair or replace your vehicle. if it's damaged in you vehicle or destroyed in an accident with another vehicle car, regardless of who is at fault. That's differ from liability coverage, which helps pay for damage to another vehicle holder car from an accident you marked.
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