5 Areas Covered By An Auto Insurance Policy
Auto insurance is a prerequisite in most states for one to drive a vehicle legally. It is a contract between the car owner and the insurance company. In the agreement, the vehicle owner undertakes to pay premiums to the insurance company at regular intervals. In return, the insurer undertakes to provide compensation for loss resulting from an accident. Here are basic areas that an auto insurance policy can ensure compensation:
The policy ensures compensation for injuries suffered by the policyholder and other family members. However, the policy doesn't just cover injuries suffered by these individuals while driving the family vehicle. Instead, it also ensures compensation when one gets injured while driving other people's cars with permission.
Property Damage Liability
In anticipation of a car damaging other people's property while driving it, the insurance policy may compensate property owners for the loss. For example, the insurance company may pay for damage to another car if the insured vehicle and driver are at fault. Other types of property covered by auto insurance include fences, buildings, telephone poles, and lamp posts when hit by a car.
Medical Expenses After Injury
Auto insurance covers medical expenses incurred when treating the driver and passengers hurt during an accident. No matter how huge the medical bill is, insurance will pay for it. Also, it may compensate individuals for lost wages due to staying away from work for prolonged periods. If the injured person requires certain services, the insurance policy will also pay for them.
If the vehicle owner takes a collision policy, then the insurance company will pay for damages to their vehicle after a collision. Furthermore, this class of auto policy covers any damages due to driving on a pothole-filled road. The person taking out an insurance policy has to pay for collision coverage separately as an extra cost.
Comprehensive coverage will compensate you for damage or theft resulting from circumstances other than a collision with an object or another vehicle. It may include risks like riots, floods, hail, windstorms, earthquakes, explosions, missiles, falling objects, and fire. Collision with wild animals is also covered under this policy.
If you are wondering why you should take an auto insurance policy, remember that it covers bodily injuries, property damage, medical expenses, collision, and comprehensive coverage. Insurance is essential since it eliminates the need to meet these expenses out of your pocket.