Vehicle Insurance

October 4, 2008

My previous post was about Home Insurance and the Calamities covered in Home Insurance. Today I am giving my views about Vehicle Insurance.

Vehicle Insurance

It also known as auto insurance, car insurance, or motor insurance this insurance is being purchased for car, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accident and against liability that could be incurred in an accident.

Needs of Vehicle Insurance
Now days motor vehicle accidents are leading cause of death, even if the trend has somewhat declined over the past 20 years. Indeed, motor vehicle accidents are a significant cause of death in comparison with air and space. So the need auto insurance is very important now a days either for two-wheeler insurance or four-wheeler insurance or a trucks. As the criteria for the Automobile Insurance and benefits associated with it are almost the same for both two-wheeler and four-wheelers .This section will deal with some of the other benefits which are associated with insurance .The insurance provides the necessary cover if you meet with some unforeseen incident or an accident.
Coverage of Vehicle Insurance

Bodily-Injury Coverage: It includes medical bills and lost wages, property-damage. It pays to repair or replace property you destroy, such as other cars or property you run into, such as fences. It can also pay for “pain and suffering” damages if someone sues you after a car accident but it is only up to your liability limits.
Liability Coverage: It is essential. States require certain levels of minimum liability insurance because that is the coverage that pays for damage you do to others, including bodily injury and property damage. It also pays for your legal bills if you cause an accident.

Collision Coverage:
Its all up to the person, if you cause a car accident, the collision portion of your policy pays to repair your own vehicle. Your car is considered “totaled” when the repair costs exceed a certain threshold of the car’s value, such as 70 percent. At that point, the insurance company will tow away the car to the salvage yard and offer you the actual cash value of your car.
Comprehensive Coverage: It pays for damages to your car that are not due to car accidents Theft, fire, vandalism, natural disasters and hitting a deer are included. Also, your glass coverage comes under the comprehensive portion of your policy. If your windshield cracks, comprehensive coverage saves the day. As with collision coverage, there is a deductible for any comprehensive coverage claim.

Uninsured/Under insured Motorist’s Coverage:
Uninsured motorists (UM) coverage pays for medical bills if you are struck by someone who is uninsured or if you are a victim of a hit-and-rum driver. UM is required in many states. Similarly, under insured motorists (UIM) coverage kicks in when someone causes an accident but doesn’t have enough insurance to cover all the medical bills. In that case, the at-fault person’s insurance pays out to its maximum and then your UIM coverage pays for the remaining bills, up to your own limit. UIM coverage is required only in Connecticut, Maine, Minnesota and Vermont, according to III. UM and UIM coverage also cover pain and suffering claims and, in some states, also cover property damage.