Personal auto insurance is important in many states and it helps you to get some financial coverage when you happen to have an accident. The question is it enough to have such coverage? Or do you need more? Here you will know how insurance works and what is best for you?
The basics of Auto insurance
Auto insurance is a contract you sign with your insurance company which helps you when an auto disaster strikes. You can get your car or motorcycle covered in case of an accident or a theft. In place of paying a premium on your insurance, your insurer will have you covered for the loss you incurred.
With motorcycle or auto insurance you are covered for some basic things like:
Liability: the legal requirement for paying for damage caused to others and their property
Medical: the cost incurred on injuries, losses, or funeral expenses
Property: the damage done to other’s car or the theft of your car
Every state requires you to have at least basic auto and motorcycle insurance. The laws differ from state to state and auto insurance coverage packages depend on the insurer. The prices vary to fit the need of an individual and mostly dependent on the driving record of the individual.
Policies have a deadline of six months or a year and are renewable at the end. You are informed by your insurance company when is time to renew your policy and pay for the premium.
Coverage and conditions by my auto insurance?
You have your car covered no matter who drives it with your permission. Your family members are also covered if they are traveling with you in the same car. You can even have permission to drive other’s cars and you get covered for it too.
Your personal auto policy is only for your driving. The personal auto policy is suitable for day to day tasks and doesn’t cover commercial use like delivering pizzas or packages.
The personal auto insurance policy also doesn’t cover providing pick and drop services like ride-sharing on Lyft or Uber. You can always ask an agent here at Penny Insurance if you would like to extend your insurance package and include ride-sharing services for an additional fee.
Is Auto insurance coverage compulsory?
Bodily injured liability: this covers the costs associated with death or injuries that are caused by you or another driver and involves your car.
Damaged property liability: this covers the costs that you or other drivers using your car causes to another property or vehicle like a building, utility pole, or fence.
Many states also require you to have:
- Personal injury protection (PIP) or Medical payments providing cost for medical costs for injuries to you or the passengers involved.
- Uninsured motorist coverage pays for the incident when an accident is caused by a driver without auto insurance or in a hit-and-run case. You can also buy underinsured motorist coverage, which covers the costs when other driver lacks don’t have the proper insurance to pay for the cost of a serious accident.
Even if in your state uninsured motorist coverage and PIP are not mandatory, consider including them for greater coverage protection.
Types of Auto insurance coverage
Generally, your car is not covered in most of the basic legally required auto insurance. But the damage caused by your car is covered. To have coverage for your car consider including:
- Collision reimburses cover for the damage cost to your car on collision with a tree, guardrail, and another car when you are at fault. This doesn’t cover for the mechanical failure or any wear and tear of your car. It does cover you for damage caused by potholes or rolling your car.
- Comprehensive covers for the theft or damage occurred due to collision or due to flood, fire, hail, vandalism, falling rocks, trees, or other kinds of hazards even getting hit by an asteroid.
- Glass coverage gives you coverage for the most common windshield damage. Some auto insurance companies include no-deductible glass coverage which also covers rear windows, side windows, and glass sunroofs, or you can purchase supplemental glass coverage.
What is gap insurance?
The comprehensive and collision coverage only covers the market value of your car and not the price you got it for. We know new cars depreciate quickly, if your car gets totaled or theft you might be at a gap between what you have paid for the vehicle and your insurance company. For this reason, you might want to buy gap insurance to pay the coverage difference. For the leased vehicle, the gap coverage is usually paid depending on the lease payment.
Required Coverage for motorcycles
Every state asks for different coverage from the vehicle owner. Some states don’t have minimum motorcycle insurance needs. On the other hand, the requirements for motorcycle insurance in some states is the same. An example of basic motorcycle insurance can be but not limited to:
- $20,000 in a property damage charge
- $25,000 in bodily injury liability/person
- $55,000 in bodily injury liability/accident
Looking for a low priced best value insurance plan?
Get a free quote from one of our insurance policy specialist. Fill in the form given on our home page or feel free to contact one of our agents on the given contact numbers. Please make sure to place your calls during office hours. We will be much happy to serve you with your needs.