Auto Insurance Cover – The Facts

There are different types of auto insurance coverage available for your protection. Here are the most common types that an auto insurance company may provide.

Liability Cover. Liability coverage pays others for damages resulting from a car accident that you cause. It also pays for a lawyer to defend you if you are sued for damages.

Comprehensive Coverage – Comprehensive coverage is intended to cover damage to (or the loss of) the insured vehicle resulting from causes other than collision such as storm damage, theft, vandalism and fire.

Collision Coverage – With collision coverage, your auto insurance company pays for damage to your car if it is involved in a collision with another vehicle or with a stationery object, no matter who is at fault.

Uninsured/Underinsured Cover. Uninsured and underinsured driver coverage protects you when the negligent driver has no auto insurance or insufficient insurance. In most sates this only covers bodily injury, and not property damage.

GAP Cover – When you buy a new car or even a fairly new used car, it’s vale will depreciate by at least 20% when you drive it off the lot. So, on a $30,000 car your auto insurance company will only pay out $24,000 at the most in the event of it being stolen or totalled, yet you will still have to pay off the $30,000 loan. If you have GAP cover than you will be able to recover the $6,000 difference.

PIP Personal Injury Protection – PIP (also known as no-fault), covers medical and funeral expenses and lost wages of the driver and passengers in the insured vehicle no matter who caused the accident.

Pay-Per-Mile – A fairly new type of coverage is Pay-Per-Mile. It is so new that it is currently available only in a few states. Basically you pay auto insurance based on the usage of your car. The less you drive, the less you pay. The downside is that in order to benefit, you have to allow your auto insurance company to put some form of tracking device in your car.

With the Internet easily accessible you have a vast amount of knowledge at your fingertips to help you choose the best coverage for you and your lifestyle.

Looking for effective info on how to get auto insurance online? Visit affordable auto insurance quotes guide for some clear and concise information