Auto Insurance 101By Chris Tolamalu
Auto insurance, as the term suggests, is insurance that you can purchase for your vehicle (cars, trucks, SUVs, motorcycles, etc.). It provides protection against losses incurred as a result of vehicle accidents. While the product seems simple, there are many different types of auto insurance policies available for purchase. Depending on the policy that you choose, your coverage levels and types will vary. Broadly speaking, these are the types of auto insurance programs on the market today:
• ‘Comprehensive coverage’ (Comp) – This kind of insurance insures your vehicle against the cost of purchasing a new vehicle if it is stolen or destroyed in a fire.
• ‘Collision coverage’ (Coll) – This kind of insurance insures your vehicle against the cost of repairing the vehicle following an accident or the cost of purchasing a new vehicle if it is damaged in an accident beyond economic repair.
• Personal Injury Protection (PIP) - This insures against the cost of medical expenses and lost wages related to the use, ownership or maintenance of a motor vehicle. This insurance is mandatory in some U.S. states.
• Medical Payments (MP) - insures against the cost of medical expenses for bodily injury sustained in an accident beyond any expenses that may be covered by PIP.
• Legal liability claims against the driver or owner of the vehicle following the vehicle causing damage or injury to a third party.
While ‘Liability insurance’ covers only legal liability, ‘comprehensive insurance’ covers PIP, MP, as well as legal liability. In the United States, liability insurance covers claims against the policyholder and any other operator of the insured’s vehicle. If, however, any other operators live at the same address, they must specifically be covered on the policy. For rented vehicles, most rental car companies offer insurance to cover damage to the rental vehicle.
While comprehensive insurance covers most aspects of damage which can affect the car itself or the driver, there is one risk associated with buying a new car is not covered even by comprehensive insurance – once the car is bought, there is a sharp decline in its value. During this period (immediately after a car is bought), in which the remaining car payments exceed the value of the vehicle and thus the compensation the insurer will pay for a ‘totaled’ (destroyed, or written-off) vehicle, customers may consider purchasing ‘GAP insurance’. GAP insurance was established in the early 1980's to provide protection to consumers based on buying and market trends.
Which city has the highest auto insurance rates?
Survey ranks 25 nationwide; average annual premiums range from more than $2,000 to less than $500
Susan Tompor: Detroit drivers pay dearly for car insurance
Now it's official: Detroit has the most expensive car insurance among the largest 25 U.S. metro markets, according to insuranceQuotes.com.
Lyft hearing examines insurance
A witness for the Pennsylvania Insurance Federation, a Pennsylvania trade group, tried to explain Wednesday why the insurance coverage that San Francisco ride-sharing company Lyft is proposing is problematic.
Car thief spotted at wheel of stolen vehicle by police
A THIEF drove off in a car after taking its keys when he broke into another vehicle parked nearby.
Can I Buy Insurance After Being Injured In An Accident?
Now that the federal health law forbids denial of insurance for pre-existing condition, some people have wondered if they can wait until they get sick to buy health coverage. Let's say an uninsured person is in a car accident, has emergency surgery and is hospitalized, and after awaking from surgery asks to purchase insurance right away. Under the health law, would his medical costs be covered ...
Personal Injury Lawyer Jennifer Gore-Cuthbert, a Guest on Business Radio X's "Atlanta Legal Experts" Show
Jennifer Gore-Cuthbert with The Gore Law Firm, appeared on "Atlanta Legal Experts" to discuss car accidents, diminished value claims, and insurance coverages. (PRWeb September 03, 2014) Read the full story at http://www.prweb.com/releases/2014/09/prweb12135662.htm
Ask Andy: How to avoid buying a flooded vehicle
Chief Consumer Investigator Andy Wise says no title, no deal -- and it better not be a salvage title.
Renting a car? Know whether your card adds insurance
Renting a car can put your credit card benefits into play, but only if you know what's covered and avoid the exclusions
5 Insurance Policies Everyone Should Have
Insurance policies come in a wide variety of shapes and sizes. Shop carefully and the right policies will go a long way towards helping you protect your assets.
Under Georgia Law, Not All Hot Car Deaths Are Treated Equally
Justin Ross Harris, the Georgia father who left his two year old son to die in a hot car, has been indicted for murder by a grand jury. Harris faces eight criminal counts: malice murder, cruelty to children in the first degree, cruelty to children in the second degree, criminal attempt to commit felony exploitation of children, two counts of felony murder, and two counts of dissemination of ...