Important Areas to Be Covered In Auto Insurance

There are many things which should be covered in an auto insurance plan, but usually people do not care much about it as they do not give it more importance and many are unaware of all these things. One can know that what all should be covered in an auto insurance plan without any hassle. There are many sources available like internet, list of the government requirements in an auto insurance policy.

The most common points which required a cover as per the govt. rules are as follow:

Liability Coverage

Liability coverage can be defined as the cover provided when in an accident a vehicle gets damaged by the insured vehicle. This cover is divided into two that is property damage and bodily injury.

In property damage cover the owner of the other car will get the money when the accident has occurred by the fault of the insured car. In this case the insured car’s owner can not claim any money as he is in the fault. Entire money in this case will be paid by the insurance company but if there is an imprisonment then the driver of the car at the time of accident will have to bear it.

The other cover in this, which is bodily injury, covers the driver as well as passengers of the other car when the insured car is faulty.

Both of these covers are equally important and are needed in every state. Also it is recommended that before purchasing a policy one should check, what is the minimum requirement for liability coverage in their state.

Collision Coverage

This cover is also very important but this is not require under legal requirements as in this cover the policy holder get the money if met with an accident or any other uncertainty. Usually people avoid this cover as it is not a necessity as per the law but they don’t consider the benefits they can get through it if needed.

Usually people pick up this cover shield if their car is financed as sometimes the vendor of the car may need it.

Personal Injury Protection (PIP)

This is another important point and should be considered while purchasing insurance. As per this cover if car meets with an accident then the driver, passengers in the car and the pedestrians who are affected by the accident get the claim.

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