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| Typical Components Of An Auto Insurance Exchange Policy |
If you're purchasing a new car or looking for auto insurance exchange , you'll want to know about the many types of coverage that are available. If you're in a car accident, the many forms of automobile insurance coverage are available to assist protect you, your passengers, and your vehicle.
Auto liability coverage, uninsured and underinsured motorist coverage, comprehensive coverage, collision coverage, medical payments coverage, and personal injury protection are six popular vehicle insurance coverage options.. Depending on where you live, some of these coverages are mandatory and some are optional. Understanding what's required in your state and what each helps cover can help you choose the right coverage for your situation.
1. LIABILITY COVERAGE
In most states, auto liability insurance is required. Drivers are obliged by law to obtain at least the state-mandated minimum amount of liability coverage. There are two parts to liability coverage:
If you cause an accident, bodily injury responsibility may assist pay for expenditures linked to another person's injuries.
Property damage liability insurance can assist cover the costs of causing damage to another person's property while driving.
2. UNINSURED AND UNDERINSURED MOTORIST COVERAGE
If you're hit by a driver who doesn't have insurance, uninsured motorist coverage may help pay for your medical bills or, in some states, repairs to your vehicle. If you're hit by an underinsured driver, that means they have car insurance but their liability limits aren't enough to cover your resulting medical bills. That's where underinsured motorist coverage may help.
Uninsured and underinsured motorist coverage is required in some states and optional in other states.
3. COMPREHENSIVE COVERAGE
Comprehensive may help cover damage to your car from things like theft, fire, hail or vandalism. If your car is damaged by a covered peril, comprehensive coverage may help pay to repair or replace your vehicle (up to the vehicle's actual cash value). This coverage has a deductible, which is the amount you'll pay out of pocket before your insurer reimburses you for a covered claim.
Comprehensive is typically an optional coverage — but your lender may require it if you're leasing or paying off your vehicle.
4. COLLISION COVERAGE
If you're involved in an accident with another vehicle, or if you hit an object such as a fence, collision coverage may help pay to repair or replace your car (up to its actual cash value and minus your deductible).
Collision coverage is typically optional. It may be required, however, by your vehicle's leaseholder or lender.
5. MEDICAL PAYMENTS COVERAGE
If you, your passengers or family members who are driving the insured vehicle are injured in an accident, medical payments coverage may help pay for costs associated with the injuries. Covered costs may include hospital visits, surgery, X-rays and more.
Medical payments coverage is required in some states and optional in others.
6. PERSONAL INJURY PROTECTION
Personal injury protection, or PIP, is only available in some states. Like medical payments coverage, PIP may help pay for your medical expenses after an accident. In addition, PIP may also help cover other expenses incurred because of your injuries — for example, child care expenses or lost income.
Personal injury protection is required in some states and optional in other states where it's available.
OTHER TYPES OF AUTO INSURANCE COVERAGE
Depending on your situation, you may be able to add the following optional coverages to your auto insurance exchange policy. Your insurance agent can explain what each of these benefits covers so you can create a policy that's perfect for you.
The many components of an auto insurance exchange policy are available to assist you in protecting yourself and your vehicle. Are you having trouble figuring out which coverages are mandated and which are optional in your state? Speak with a local representative.
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