Optional insurance coverage

Optional insurance coverage

There are many types of car insurance outside of the typical state mandate responsibility Medical payment insurance, personal injury called PIP covers a wider area, such as lost salaries, funeral expenses and pain and suffering, Collision, Comprehensive, Gap Insurance, Uninsured and under insured motorists.

Medical Payment Insurance - This type of insurance covers medical bills for you or someone else up to a certain amount that occurs when using your vehicle regardless of fault. Theoretically, because it pays no matter, the insurance would cover your medical expenses if you were to crash your car to a fence. This kind of insurance is usually sold in increments of 1,000 to 5,000. The coverage extends to your closest family members who live in your household while they are passengers in another persons car and would cover medical expenses regardless of the other drivers own insurance. Medical payment insurance is also called MedPay.

Protection for personal injury - PIP insurance covers the insured together with members of his or her household that are related to blood, marriage, adoption and or foster and step children. PIP covers medical expenses for damage arising from an automobile accident up to three years after the date of the event. In addition to medical expenses, PIP may also cover lost salaries, funeral expenses and loss of services payment to others for work you can not do. In the same way as MedPay, personal injury covers your medical expenses regardless of the drivers fault.

Collision - This voluntary insurance method pays for damage to your car in an auto vehicle, even if you are a malfunctioner like crashing your car in a tree or a telephone pole. Collision insurance would also cover repairs to your car when you are involved in an accident and the other driver does not have liability insurance. Although the collision covers repairs to your car, regardless of the situation, there are limits to the amount of repayment your insurance company only needs to pay the difference between your cars carrying value and your cars premium accident. Lets say your car is worth 10,000 and the processing value is 1000. In this example, your insurance company is only required to pay up to 9000 in repairs, no matter what you think is the value of your car. Collision insurance has an optional replacement cost coverage for new or vintage cars. This additional coverage gives the replacement cost of the new or vintage car. Although not required by any state, lenders and leasing companies will usually require customers to wear Collision Insurance.

Extensive - This type of insurance is very similar to Collision Insurance The big difference is that Comprehensive covers damage to your vehicle with an unknown device or a act of God. In addition to an automobile cover, the coverage areas include vandalism, hurricane, flood, theft and fire. Your insurance company is only required to pay up to your market capitalization minus your deductible. Although not required by any state, lenders and leasing companies will usually require their customers to wear Collision Insurance.

Gap Insurance - The insurance pays for the difference between what is owed to a vehicle and what the insurance company claims that your car is worth. For example You owed 15,000 on a car and you succeed in some way with the car in an accident. Your insurance company decides your car is worth only 13,000, so thats all they have to pay. You are now stuck and pay out a 2000 loan for a car that no longer exists. Gap insurance would normally cover the 2000 difference. There are some restrictions and limitations for Gap Insurance. For example Gap Insurance is usually not available on older cars and not all insurance companies will offer it. It is best to check with your insurance company for full details of the Gap Insurance coverage.

Uncertain and under insured driver - Just like the title, this type of insurance tells you and your vehicle if the other driver is not properly insured and he or she is determined to be inaccurate. Not all states require this kind of insurance, but a handful does. It is recommended that you purchase this cover because, if you are involved in a fender bender with an uninsured driver, it is highly unlikely that you will be compensated for damage to you or your vehicle if the other driver is guilty and uninsured or under insured. UM UIM is generally affordable and can be purchased in varying amounts of coverage.


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