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.
10 Step Checklist for Labor Day Car Shopping
Labor Day is a federally-recognized holiday which celebrates hardworking Americans with a day off from work. TrueCar.com estimated that Labor Day weekend last year would boast 1.13 million unit sales among the country's leading automotive manufacturers. With the car-buying trend likely to pick up at a similar speed from the last Labor Day weekend, it's clear that now is the best time to buy a ...
How to Buy a Car With Low or No Credit
Like mortgage lending, auto financing got tougher after 2008, especially for those with low or no credit. Many Americans held onto their cars rather than upgrading because they couldn't get financing or worried about taking on an auto loan amid layoffs, hiring freezes and other uncertainty. The not-so-good news, if you have credit issues, is that you'll often pay a premium for financing to cover ...
Can I Buy Insurance After Being Injured In An Accident?
The health law's ban on pre-existing conditions doesn't mean you can buy a plan after you get sick. Most people have to wait for the open enrollment period.
New electric car club in Stratford is first of its kind in UK
Pay-per-use E-Car Club offers chance to hire one of four vehicles each with own parking space and charging points around town
Cheapest Cities You Will Want to Live In
Cities with super-low living costs can suffer from high unemployment, poverty and a lack of services. To do so, we required that each city have below-average living costs, high household incomes relative to the cost of living, and an unemployment rate that's below the national average.
SPLC helps low-income people with traffic violations avoid jail
The City of Montgomery reached a settlement with the Southern Poverty Law Center on Wednesday that should help keep some people out of jail.
Tata AIG eyes Rs 3000 cr premium income this fiscal
Riding high on the optimism for economic revival, private sector insurer, Tata AIG General Insurance is eyeing premium income to touch Rs 3000 crore this fiscal, up 22 per cent from previous year?s Rs 2,456 crore.
Why commercial drivers hardly make motor insurance claims
Motor insurance is mandatory by law and also one of the most common and highly respected insurance policies in Ghana. Also known as vehicle/car/auto insurance, motor insurance is purchased for cars, trucks and other road vehicles.
Volokh Conspiracy: Subprime auto loans
Leaving aside the innuendo, what do we actually know about this market?
Angry Uber Drivers Break Out Of Low-Paying UberX Prison
There is one little downside to all these extended UberX deals NYC customers have been getting lately: the drivers aren't happy. A large group of Uber drivers, under the name Uber Drivers Network NYC , have been protesting the company all week?they've organized to strike this weekend and planned to show up with 1,000+ drivers at Uber's office on Monday. So Uber did something very un-Uber like ...