- 27
- Apr
Most jurisdictions today require that drivers or vehicle owners protect themselves and others against liability claims by purchasing a level of car insurance coverage that will pay at least part of any liability claims. Uninsured motorist insurance is required in some jurisdictions as well. A third major type of vehicle insurance is comprehensive. While comprehensive coverage is rarely required by government, many lien holders and owners choose to cover vehicles with comprehensive insurance.
When you are the responsible party in an automobile accident, you face financial ruin to pay for the hospital, medical and other costs of the other driver. Usually there are minimum coverage amounts, often expressed as the amount paid to a victim by the insurance company. The costs over and above the minimum coverage is the responsibility of the driver found to be at fault in the accident.
There are two numbers important in the coverage levels. The amount paid by the insurance company for a single victim of an accident and the total costs covered in a single accident. If your policy calls for $25,000/$50,000 limits, it means that your carrier would pay up to $25,000 for the single victim of an accident for which you are to blame, and a maximum of $50,000 for ALL victims of a single accident.
Liability insurance coverage is usually required for personal injury protection and for property damage liability. Personal injury protection is to pay for medical and hospital expenses, time lost from work and even pain and suffering costs. These payments are made to the other driver–not for personal medical costs.
In addition to personal liability, you must purchase property damage liability coverage in most areas. This insurance coverage is intended to pay for damages the at-fault driver’s vehicle causes to the other vehicle or to property. As with personal injury liability, the coverage is for the other party, not the policy holder.
Many vehicle owners purchase comprehensive insurance on their automobiles. If you are making car payments, the lender may require that you carry comprehensive coverage. This insurance coverage is for damages to you and your own car when you caused the accident.
Car insurance might also include required coverage called uninsured motorist insurance. This type of insurance protects you and your vehicle if another driver who is uninsured causes an accident in which you or your automobile suffer injuries. When purchasing vehicle insurance, it is important to determine the level of coverage that will protect you from financial ruin in the event of an accident. You can then search for the best price for the given coverage.
Not really sure what the reason for Car Inspection for Insurance Purposes are? Check out our car insurance overview for all you need to know and more on top ins cover.
