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:
Coverage:
• ‘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.
Protection:
• 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.
|
Texas Leads U.S. in Pickup Theft as Crooks Target Border
Texas has the most pickup truck thefts of any U.S. state, as criminals target towns where the vehicles can most easily be taken over the Mexican border.
Honda bolsters Fit to boost crash resistance
DETROIT ? When the subcompact Fit failed a crash test, Honda went back to the drawing board. The tiny Fit, redesigned for the 2015 model year, initially flunked the Insurance Institute for Highway Safety?s small overlap test, earning just a ?Marginal? rating. The test simulates a 40 mph crash between the front corner of a car and an object such as a utility pole. Honda engineers strengthened the ...
Warranty
Durhl Caussey writes a car column read around the world. He may be reached at this paper or dcaussey@sbcglobal.net. ]]> http://www.theepochtimes.com/n3/928813-2015-gmc-yukon-denali-4wd/feed/ 0 http://www.theepochtimes.com/n3/928829-2014-bmw-535d-bmw-diesel-done-right/ http://www.theepochtimes.com/n3/928829-2014-bmw-535d-bmw-diesel-done-right/#comments Tue, 02 Sep 2014 01:24:09 +0000 Jim ...
Papago GoSafe 200 dashcam review
I loved watching that footage of the giant meteor that broke up over Chelyabinsk, Russia. It was caught by dozens of people, from every conceivable angle. Were they waiting for it to show up? Heck, no, no one knew it was on its way. The Russians are big fans of car dash cams to protect Read More...
Windows to New Worlds
After 17 years of planning, fundraising, designing and building, the South Carolina State Museum?s new Windows To New Worlds project officially opens on Aug. 16. It includes a planetarium, 4D theater, observatory and an exciting and collaborative approach to education that can reach every school and give every student a chance to reach for the stars.
Victim of drunk driver recounts crash
Helen Gordon took early retirement last spring. It came courtesy of a drunken driver with no insurance. URBANA ? Although she wasn't really ready, Helen Gordon took early retirement last spring. It came courtesy of a drunken driver with no insurance. "There's no way I could stand up and do the work I was doing before," said the 56-year-old woman, a hair dresser for 20 years. read more
Honda retools subcompact Fits to make them more crash-resistant after flunking safety test
DETROIT - When the subcompact Fit failed a crash test, Honda went back to the drawing board. The tiny Fit, redesigned for the 2015 model year, initially flunked the Insurance Institute for Highway Safety's small overlap test, earning just a "Marginal" rating. The test simulates a 40 mph crash ...
Honda's quick safety fix
When the subcompact Fit failed a crash test, Honda went back to the drawing board. The tiny Fit, redesigned for the 2015 model year, initially flunked the Insurance Institute for Highway Safety's small overlap test, earning just a "Marginal" rating.
Honda retools subcompact Fit to make it more crash-resistant
Decides to strengthen bumper after flunking safety test
Honda Fit Retooled for Crash Resistance
DETROIT - When the subcompact Fit failed a crash test, Honda went back to the drawing board. The tiny Fit, redesigned for the 2015 model year, initially flunked the Insurance Institute for Highway Safety's small overlap test, earning just a "Marginal" rating.
|
