April 17, 2010

4 Types Of Auto Insurance Coverage That Most Drivers Will Use After An Accident

A motorist’s auto insurance gets a work-out after an accident when various coverages will be called upon to pay accident costs. Coverages most likely to be used are personal injury protection, liability, collision, under or uninsured motorists, and gap. A good agent will provide auto insurance quotes for all the insurance types, taking into consideration what state requirements for auto insurance are. Vehicle owners can then decide upon what coverage they want based on the auto insurance premium to be paid.

Most automobile accidents mean injuries, so Personal Injury Protection is probably the most used type of coverage. It’s also known as PIP, or Med-Pay, because it pays medical expenses if you are injured in the accident. While Med-Pay pays only medical expenses, PIP also covers wage loss if you are unable to work, and for household services if you can’t clean your house or cut the grass. PIP pays regardless of which driver was at-fault for the accident. It also covers passengers in your vehicle. Medical treatment following an accident can be very expensive and sometimes the initial emergency room visit can easily cost thousands of dollars. Be sure to have your agent give you auto insurance quotes for several levels of PIP coverage.

Liability insurance comes into play if you caused the accident. People who you’ve injured are entitled to compensation for medical expenses, wage loss, and pain and suffering for an auto insurance accident. They’re also entitled to have their damaged car repaired. Liability insurance covers all this as well as paying for repairs to other things, such as fences, that were damaged in the accident. In some states, passengers in your car may have a liability claim against you. If you do not have enough insurance to cover the accident costs, some states allow injured people to go after your personal assets. That’s why it’s so important for your agent to give you auto insurance quotes for several levels of coverage. Then you can choose the auto insurance premium that you can afford.

If a driver hits you who does not have insurance or insufficient insurance to compensate you, you can file for additional compensation under your under or uninsured motorists policy. The amount of this coverage is usually tied to the amount of liability insurance you have. Collision insurance will pay for the damage to your own car. Some lenders require new vehicle buyers to carry gap insurance. This insurance will pay off the rest of your loan if your car is totaled while thousands of dollars are still owed on it. Make friends with your car insurance agent; auto insurance premiums may seem high, but they’ll save you money following an accident.