By Jude Wright
Most states require that a vehicle be insured before it can be
driven on public streets and highways. It is important to
understand the terminology of your auto insurance policy so
that you know that you have the necessary insurance coverages
for your area. Take time to review your car insurance to make
sure you have what you need.
The deductible is the portion of a covered loss that is your
responsibility. The deductible applies to each covered loss.
Deductibles vary by state but are typically in the amounts of
$100, $250, $500 or $1,000. Usually, the higher the deductible
the lower your premiums. Of course, the amount you must pay
of your pocket increase with the higher deductible.
There can be many types of coverage included within one single
auto insurance policy. Insurance coverage requirements vary by
state and usually include the following types of coverage:
Liability: Liability coverage pays for accidental bodily
and property damages to others when the insured person is
legally responsible for an accident. Bodily injury damages
include medical expenses, pain and suffering, lost wages and
other special damages. Property damage includes damaged
property and may include loss of use. Liability coverage also
pays defense and court costs.
Personal Injury Protection: Personal Injury Protection is
required in some states. It pays medical expenses for covered
persons, regardless of fault, for medical treatment due to an
Medical Payments: Medical Payments Coverage is available in
most states. It pays medical and funeral expenses for covered
persons, regardless of fault, when those expenses are related
to an auto accident.
Collision: Collision coverage pays for damage to a covered
vehicle caused by collision with another object or automobile.
Comprehensive: Comprehensive coverage pays for loss of or
damage to a covered vehicles, not caused by a collision or
accident. Examples include loss caused by fire, wind, hail,
flood, vandalism, theft or hitting an animal.
Uninsured Motorist: Uninsured Motorist coverage pays damages
when a covered person is injured by an auto accident caused by
a driver who does not have liability insurance.
Rental Reimbursement: Rental Reimbursement pays car rentall
expenses when your auto is disabled due to an accident.
Emergency Road Service: Emergency Road Service pays expenses
incurred for having your auto towed as a result of a
Who is covered under an auto policy?
Your policy usually covers you, your spouse and other
who live in your household and others who have permission to
drive one of your covered vehicles.
About The Author: Jude Wright is an author and webmaster.
Descriptions of different types of insurance can be found on
her site at economicalinsurancequotes.com.