Reader’s Question:

I just want to know what the available auto insurance coverage is.

Rodney

Burbank, CA

It is to one’s own awareness that liability auto insurance coverage pays up to the specified limits and limitations of bodily injury and property damages incurred by third parties if the insured is found liable as a result of an automobile accident. The liable party would be responsible for paying the third parties’ damages and may be forced to pay from the equity of a house or vehicle, if without coverage.

1. No Fault Insurance coverage- this is also known as Personal Injury Protection or PIP. This is a coverage which applies to a driver, passengers and any pedestrians involved in an automobile accident. Medical expenses, loss of wages, and other related injuries are being paid up regardless of who is at fault and even if there is negligence involved.
2. Medical payments auto insurance portion- a policy that is designed to pay some of the medical consequences that resulted from an accident such as medical bills and/or funeral expenses up to the policy limit.
3. Uninsured motorist auto insurance- this does not only insures against the “Uninsured motorist” but also protects policy owners against the “Under-insured motorist”. This is optional; however, it is recommended that it be added to a policy in the best interest of the insured.
4. Comprehensive and collision auto insurance coverage- this is also referred to as “Physical Damage”, this covers damage caused by anything “other than auto collisions”. There are, however exclusions under comprehensive coverage and some of the more common ones are ,theft, fire, vandalism, collision with animal, windstorm, flying objects, hail, broken windows.
5. Rental car coverage- this coverage pays for the rental of a vehicle in the event the policy owner’s vehicle be stolen or in an accident. Availability of this through your insurance company may provide reimbursement for costs paid towards a rental car while the vehicle is being repaired or if stolen, while the claim is settled.

Additionally, the Internet is also a great source to instantly compare auto insurance coverage available from multiple brand name companies.