A Few Facts You Should Know About Car Insurance

Most jurisdictions today require that drivers or vehicle owners protect themselves and others against liability claims by purchasing a level of car insurance coverage that will pay at least part of any liability claims. Uninsured motorist insurance is required in some jurisdictions as well. A third major type of vehicle insurance is comprehensive. While comprehensive coverage is rarely required by government, many lien holders and owners choose to cover vehicles with comprehensive insurance.

If you cause an accident in your vehicle, liability insurance protects you for at least a portion of the costs that result to the other vehicle and driver. Most areas require a mandated minimum amount of liability coverage that must be purchased. The minimum can be increased by the amount of coverage that you want to purchase.

There are two numbers important in the coverage levels. The amount paid by the insurance company for a single victim of an accident and the total costs covered in a single accident. If your policy calls for $25,000/$50,000 limits, it means that your carrier would pay up to $25,000 for the single victim of an accident for which you are to blame, and a maximum of $50,000 for ALL victims of a single accident.

Liability insurance may be divided into personal injury liability and property damage liability. Personal injury protection takes care of expenses for the victim of an accident caused by you or your vehicle. Covered expenses include medical expenses, job or income loss and pain and suffering damages. Mandated amounts depend upon the jurisdiction and the type of insurance purchased.

Another major liability insurance component is that of property damage liability. This part of insurance coverage is to pay the costs of damages to another vehicle or to property caused by the policy holder in an accident. Liability insurance doesn’t cover the holder of the policy for personal or vehicular expenses and damages, only the other driver is eligible.

Comprehensive insurance is the other major type of insurance for vehicles. This type of insurance pays to repair your own vehicle, even if you are responsible for the accident. It is usually required when there is a lien holder on the vehicle. So, if you are making car payments, it is likely that you will be required to carry comprehensive insurance as well as liability insurance.

Some car insurance statutes require purchase of uninsured motorist insurance. If your vehicle or you are injured by another driver who is not insured, this type of policy protects you. Before purchasing insurance, determine the needed coverage level and then search for the best price.

Not entirely sure what the reason for Car Inspection for Insurance Purposes are? Check out our car insurance overview for all you need to know and more on ins coverage.