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Motor Vehicle Insurance Basics

Understanding car insurance is not a subject the majority of people would be the slightest bit interested in. Generally speaking, this is down to the fact that motoring insurance is something you must have, as required by law and, for the better part the only real interest shown is how much it is going to cost.

Cost of Automotive Insurance
To believe that you only need the barest necessity or cheapest motor insurance, because you don’t get into accidents or are the most careful of drivers, is a bit naive. Without the basic minimum insurance, you have no protection and may be liable for all the medical costs of the injuries of the others involved.

It is not your driving record, nor your skills that determine auto accidents. Indeed, it’s all those other knuckle heads out there. Point in case, there are far too many people in the cemetery who “don’t get into accidents”.

If you go for he cheapest insurance or only what is legally required, you may find that due to circumstances beyond your control, it might be that in fact you are not covered as much as you now need.

This is why understanding car insurance and knowing the basics of understanding car insurance, is in fact most important to you as a vehicle owner. Not only that, but you also need to have the best motoring insurance that you can afford.

Just briefly, were you to run into a parked car or, the reverse, someone plows into your parked vehicle, does your minimum insurance required by law actually cover that. It must be remembered, that different countries and different states within them, may all have varying degrees of auto insurance coverage.

Categories of Auto Insurance

Insurance company’s have been doing this for a long time and you can pretty much be assured that they have seen it all. Therefore, you will find that with the many types of coverage categories, your insurance needs will ultimately be covered.

Let us have a look at some of the more common types of motor insurance coverage. This is by no means a list of every policy available and remember,  motoring insurance can vary depending on where you live. Do keep in mind that depending where you live, the terminology may also differ.

• No-fault law.

Provided you have the basic minimum motor insurance required, you are covered if you are in an incident whether or not you are at fault. Personal injury coverage for your medical expenses for the first ‘X’ amount of dollars is determined by your insurance company.

• Personal Injury Protection.

The coverage of Personal Injury Protection or P.I.P. includes your medical, hospital and funeral expenses up to the limit of the policy. Also included are, the passengers in your vehicle and, any pedestrians injured by your car. Again, you are covered for up to the amount of dollars determined by your insurance company.

• Bodily Injury Liability.

This covers any injury or death that you are responsible for as the owner of the vehicle.
Bodily injury liability insurance coverage is defined as: accidental harm to anyone, inside or outside of a vehicle, with your vehicle. This will include – hospital, rehabilitation, long-term care, loss of income, pain and suffering, etc.

• Property Damage Liability.

This will cover any damages to someone else’s property, by your vehicle. This can include their car, fences, any part of a house, all forms of other vehicles, etc. The limits of recompense for this are determined by your insurance company. Depending on your country, property damage liability and bodily injury liability are usually combined .

• Full Coverage.

Full coverage auto insurance or,  comprehensive auto insurance, means just that, you are covered for all expenses and liabilities – all liabilities incurred.

• Medical Only.

Medical covers medical costs to you and any passengers in your car suffering injury.

• Uninsured Motorist.

Uninsured Motorist covers injuries to you and any passengers in your car, when the other motorist in the incident is at fault but does not have insurance or, lacks sufficient motor insurance coverage.

The amount and type of motor insurance you get, should only be determined by how much you can actually afford. Too little is never enough. Too much – well you can never have too much.

Although motor vehicle insurance basics is not necessarily dinner table conversation, as we can see from the article above, there is a little more to it than just getting insurance because you have to.

As a vehicle owner and driver, understanding car insurance and having sufficient motor vehicle insurance coverage, may at least prevent financial catastrophe if you are unfortunate enough to be in an accident.

• The author of this article is not an insurance agent or aligned with any auto insurance agency, nor company. The article is meant to give the reader an idea of Motor Vehicle Insurance Basics. Any information about motor insurance costs or liabilities should always be discussed with an authorized insurance agency or company.

 
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