Very Cheap Auto Insurance -Tips That Guarantee Affordable Car Insurance Rates (Video)

Wednesday, May 13, 2009

Holding The Wrong Form Of Car Insurance Might Land You In Jail

By William Hazelhurst

Car insurance is designed to protect the policy holder (generally the owner of the vehicle) from financial loss in the event of a car accident. To get this protection the policy holder will be required to pay a monthly premium which varies according to a wide variety of factors such as the age of the driver, the car in question, the driver's record and the driver's location to mention a few.

There are several different forms of car insurance to protect the plan holder from costs associated with damage to the vehicle, damage to property and bodily harm of all persons involved in a car accident. The different forms of cover include:

Liability cover which pays for damages to other people or their property as a result of a car accident and that additionally covers any court costs involved. In a lot of states this is the absolute minimum required before you are allowed to take a car onto public roads.

Collision cover which is designed to pay for damage caused to your own car in a collision with another vehicle or other object.

Comprehensive cover which will pay for several types of damage including fire, theft, malicious mischief and damage resulting from severe weather.

Medical cover which is designed to pay for any medical expenses for injuries resulting from an auto accident.

PIP (Personal Injury Protection) cover which pays for any medical expenses when injury is sustained in an automobile accident, regardless of who caused the accident.

Uninsured and under-insured cover which provides payment for any damages which you sustain in the event that the other driver involved in an auto accident does not carry sufficient insurance cover.

Each state makes its own rules governing car insurance and some forms of insurance cover are mandatory in each state while others will be purely optional. Some states, for instance, only require you to carry liability cover while others require you to have personal injury protection insurance cover.

Additionally there are a number of states that are called 'no-fault' states in which policy holders can recover financial losses from their own insurer, irrespective of who is found to be at fault in a car accident.

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