Automobile Insurance

by ERIC SOTIUSO

If you own a car, auto insurance is a must. Insurance companies offer auto insurance through a personal auto policy (PAP).

Although each state has a different version of the PAP, this article on auto insurance will cover the standard insurance policy. An insurance agent can give you information on your state��s specific auto insurance policies. Most states have a financial responsibility law to make sure that the car owner can pay a liability claim against them. State laws require you to purchase a minimum amount of liability insurance. So the choices for insurance are what type of insurance you should buy and how much. Below is a brief list of different options for coverage.

Liability Insurance

Liability claims for injury whether physical or mental in terms of suffering can be for any amount. So coverage is separated into bodily injury coverage and property damage coverage. Make sure you talk with a good insurance agent to get the right amount of coverage. You really don��t want to be underinsured in this area.

Medical Payments Insurance

In some states medical payment insurance is required, but in most states it is not. This coverage is for paying for any medical expenses due to injury from an auto accident right after it happens and before any liability is determined.

Uninsured motorist

Uninsured motorist will cover the individual who is unfortunate enough to get into an accident with another party that does not carry auto insurance. This is a required policy in some states so check with your agent to find out whether or not you must carry it.

Coverage for car damage

You can either purchase comprehensive coverage or just collision coverage. Collision insures the value of just your car if you are in an accident. Comprehensive coverage takes care of any damages done to your car whether it be from an auto accident or any other type of damage from non collision events such as vandalism or fire etc. Talk to your agent to determine your needs here.

An important point to remember once you have an auto accident is to follow correct procedure. Hopefully the auto owner has a good insurance agent that can help them accomplish the specific tasks needed to get proper coverage.

Special coverage items There are other types of insurance coverage that can be added to your policy if felt needed. These are items such as car rental coverage, towing coverage, and loss of income protection etc. Once again, check with your agent to determine your needs and the costs.

Lastly, remember that each state and or your lender could require you to carry a certain amount of auto insurance. Most of the time these amounts end up being only a minimum and more coverage is usually needed. The total amount and type depends completely upon the individual��s needs and risk tolerance level. So please talk to a knowledgeable agent to determine your basic requirements, and then from there to figure out the right overall coverage for you.