| When looking at auto insurance there are many | | | | that goes along with this coverage to help |
| types of coverage's to choose from. All protect | | | | prevent fraudulent claims. This deductible can be |
| from different things, so picking the right | | | | set at $250, 500, or $1000 and you must pay this |
| coverage's for your needs is a very important | | | | to the insurance company before they settle |
| issue. Some are required (liability) and some are | | | | your claim. The level of your deductible will affect |
| optional (collision, uninsured), and we will discuss | | | | your premium. |
| each one to help you make the best decision | | | | Collision |
| when purchasing your coverage's. | | | | Collision coverage covers your car when you are |
| Liability | | | | involved in an accident that is your fault, whether |
| Liability insurance is the main type of insurance | | | | you hit another motorist, or and object (light pole, |
| and in most states and provinces, and it is the law | | | | mailbox). This coverage will go towards repairing |
| that you must at least have a minimum amount | | | | your car, and as with comprehensive there is a |
| of liability insurance. Liability does not cover you | | | | deductible that can be set at $250, 500, or $1000. |
| directly, but it protects you from the financial loss | | | | The deductible amounts will affect your insurance |
| that can come as the result of an auto accident. | | | | premiums and this insurance is not mandatory. |
| Liability coverage will cover the medical expenses | | | | Personal Injury Protection (PIP insurance) |
| and property damage that you cause as a result | | | | PIP insurance is only present in the United States, |
| of your driving when you are found at fault for | | | | and is mandatory in some but not all states. PIP |
| an accident. In the United States it can be broken | | | | insurance covers injuries to you, and the states in |
| down into two separate aspects of property | | | | which this coverage is mandatory are known as |
| damage and bodily injury, and bodily injury does | | | | no-fault states. They are labeled no-fault because, |
| not cover injuries to you. You cover the injuries | | | | regardless of who was at fault for the accident |
| you receive; you will need another form of | | | | everyone's injuries are covered. |
| medical insurance that we will discuss later (PIP). In | | | | Uninsured Motorist |
| Canada the two aspects are grouped together as | | | | Uninsured motorist insurance covers you when |
| liability and it does cover injuries that you incur as | | | | you are involved in an accident in which the |
| the result of the accident. In both countries there | | | | at-fault driver does not have insurance. Rather |
| is a minimum amount of auto insurance that you | | | | then you having to waste the time and money of |
| must have, and it differs by state and province. | | | | taking this individual to court to collect for your |
| You can increase these minimums and it is | | | | damages, your insurance company covers your |
| recommended to do so, because if the damages | | | | damages. However, the uninsured motorist does |
| exceed your amount of liability, then you are fully | | | | not get off the hook, as the insurance company |
| liable for paying the difference, which could end up | | | | usually will take them to court in order to be |
| being several thousand dollars! | | | | reimbursed for what they paid out. This type of |
| Comprehensive | | | | insurance is mandatory in some states but not all, |
| Comprehensive insurance covers only your car, | | | | and can be added on to insurance policies if you |
| and is not mandatory. It covers damages to your | | | | wish. |
| car that are not caused by other motorists. | | | | In close, there are many types of insurance |
| These damages include, fire, theft, vandalism, and | | | | options to choose from when setting up a policy. |
| damage from acts of God, such as ice storms, | | | | Hopefully now you have some insight to what |
| tornados, hail and floods. It also covers you if you | | | | these polices cover and whether you would |
| hit a deer, or other animal. There is a deductible | | | | benefit from having these policies. |