Car insurance is a mandatory requirement in most states of the USA. Car owners in the USA need to have car insurance. Otherwise, they may face the music in terms of fines, driver license’s cancellation, and other major penalties.
However, the citizens are generally not well-versed in the scope of auto insurance. They fail to comprehend the coverage scope and diversity of the insurance policy. There are several coverage options that car insurance covers such as medical cover, and collision coverage.
Setting Up the Trap (Key Points)
- Personal injury protection (PIP) is in the scope of car insurance. It also includes medical bills.
- Auto insurance covers the property liability. Property liability is the damage to any public or private from the collision of your car.
- Uninsured or underinsured motorist coverage is also a part of auto insurance. It covers damage, repair, and PIP costs when in an accident with an underinsured or uninsured driver.
- Comprehensive coverage is an included benefit in auto insurance when a vehicle is damaged completely in a natural disaster.
Personal Injury Protection: Car Insurance
Personal injury is most probable in car accidents. Therefore, a segment of car insurance covers the cost of personal injury protection (PIP). In some cases, personal injuries may not happen. Regardless of the situation, auto insurance will cover personal injury protection coverage.
The injury coverage is for the persons involved in the accident or the passersby who are injured from your car. Furthermore, PIP also covers medical bills and other medical treatment expenses.
Property Liability Coverage: Car Insurance
Property damage can occur in car accidents. You or the other driver may cause damage to public or private property during the traffic collision. Therefore, it is mandatory to cover up the losses of the property damaged as a result of the car collision.
For instance, a car collision may damage lamp posts, parked vehicles, shops, or any other public or private property. The car insurance will cover the property liability resulting from the accident.
Uninsured Or Underinsured Motorist Coverage
An uninsured motorist does not have a car insurance policy to cover the damages caused by the accident. Whereas, the underinsured motorist is the one whose coverage is not sufficient to cover the losses from the traffic accident.
Therefore, in some insurance policies, uninsured and underinsured motorists are covered to cover the losses to people and property.
Comprehensive Coverage
Comprehensive coverage is the part of auto insurance that covers the full damage of the vehicle, where it is beyond repair. Moreover, this type of coverage also includes a car damaged in a hailstorm or any other natural or human calamity.
Conclusion
Car insurance is comprehensive coverage that covers various types of damages resulting from a traffic accident. Before purchasing an auto insurance policy, one must check all the coverage options thoroughly.
Personal injury protection, property liability, uninsured, underinsured, and comprehensive coverage options form an auto insurance policy. Keep them in mind next time you are out for getting an auto insurance policy.