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Basic Automotive Insurance Coverage Explained | Jabar Post Indonesia

Basic Automotive Insurance Coverage Explained | Jabar Post Indonesia/a> – This time JabarPost.Net will discuss about car insurance .

The following is Basic Automotive Insurance Coverage Explained. And for those of you who want to find a similar explanation, you can search in the Insurance category

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Basic Automotive Insurance Coverage Explained | Jabar Post Indonesia

Vehicle insurance (also known as car insurance, motor insurance, or auto insurance) is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle. Vehicle insurance may additionally offer financial protection against theft of the vehicle, and against damage to the vehicle sustained from events other than traffic collisions, such as keying, weather or natural disasters, and damage sustained by colliding with stationary objects. The specific terms of vehicle insurance vary with legal regulations in each region.



While everyone that drives in this country has to have some form of auto insurance by law, many do not understand the basics of their policies. While we don’t all have to be auto insurance experts, it is important to at least comprehend the major bricks that build our auto insurance policies.

Collision Coverage.
This covers loss to your own auto caused by its collision with another vehicle or object. If you cause an accident, collision coverage will pay to repair your vehicle, and is normally the most expensive part of an auto insurance policy. You must choose a deductible, which is the amount you, the insured, must pay before the insurance company pays the remainder of each covered loss. The higher the deductible, the lower the premium costs. However, keep in mind that this is the amount you must pay (generally to the repair shop) if your vehicle is damaged, so deciding on your deductible, which directly affects your premium, can be a bit of a balancing act.

Comprehensive Coverage.
This covers damage to your vehicle caused by an event other than a collision or overturn. Examples include fire, theft, vandalism, and falling objects. This also comes with a deductible you select, which is how much you will pay before the insurance company pays the remainder.

Liability.
The official definition of liability from the InsWeb glossary is: “That portion of the insurance contract which pays and renders service on behalf of an insured for a covered loss arising out of the insured’s responsibility to others imposed by law or assumed by contract.” In simpler terms, if you are at fault in an accident, liability insurance will pay to cover injuries and property damage costs caused to others in the accident (including your legal defense costs, if applicable). Bodily injury coverage pays for things like medical costs and lost salary to others; while property damage pays for repairs to other people’s property you damaged in the accident (other than your own car). Liability coverage (which is the state mandated part of your policy) is the basic building block of any auto policy, and minimum liability limits vary from state to state.

Below are some common extra coverage items that are available to you:

Medical Payments

This pays you and your passengers for medical and funeral expenses incurred in an auto accident, regardless of fault. It will also cover injuries sustained by you while you’re operating someone else’s car (with their permission), in addition to injuries you or your family members incur when you are pedestrians.

Personal Injury Protection

This is the name usually given to no-fault benefits in states that have enacted mandatory or optional no-fault auto insurance laws. Personal Injury Protection (PIP) usually includes benefits for medical expenses, loss of income from work, essential services, accidental death, funeral expenses, and survivor benefits.

No-Fault Insurance

Many states have enacted auto accident compensation laws permitting auto accident victims to collect directly from their own insurance companies for medical and hospital expenses regardless of who was at fault in the accident. Although there are many legal variations of no-fault insurance, most states still allow people to sue the negligent party if the amount of damages exceeds a certain state-determined threshold.

Uninsured/Underinsured Motorists Coverage:

Uninsured Motorists Bodily Injury

Uninsured Motorists Bodily Injury (UMBI) covers you for all sums (up to your policy limits) if an accident occurs with an uninsured or hit-and-run motorist who is determined to be legally at fault.

Underinsured Motorists Bodily Injury

Underinsured Motorist Bodily Injury covers you for all sums (up to your policy limits) if an accident occurs with a motorist who is underinsured (i.e., they carry bodily injury limits less than your UMBI limits and less than the amount of the injuries).

Uninsured Motorists Property Damage

Uninsured Motorist Property Damage (UMPD) Liability coverage pays for property damages caused by uninsured drivers.

There are also other extra items, such as rental reimbursement and towing and labor charges in case of a breakdown. As mentioned above, please visit the Insweb Auto Insurance Glossary for further definitions.

Remember to keep yourself adequately covered; while having the bare minimums required by each state may keep you in compliance with state laws, they may not be enough to protect your assets if you have a major incident. Insurance experts recommend that you review your insurance policy often and thoroughly.

That is the information About Basic Automotive Insurance Coverage Explained | Jabar Post Indonesia

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50 Comments

  1. I got into an accident 3 months ago and the accident wasn’t that big our and their property damages will not exceed 500$ at all and now I received a letter says that I will exceed the limits over 50,000$ for bodily injuries !!!!! both of the cars have a little crack and that lady went to the hospitals and she making drama and now my company asking me to pay what ever will exceed 25,000$ injury per person. Who knows what should I do and I don’t have money at all I’m 18 and just trying to get a job for my lil expenses !!! Weird world

  2. one major factor for your price is how many miles a year you put on your car….less mile save money. and I can say so many other things than that

  3. A deductible is a dirty legal trick. IF you pay your own deductible and have your car fixed? Good luck in getting both insurance companies to agree to WHO was at fault. This way, everyone pays and it makes it a Hell of a lot easier for insurance companies. Don't pay your deductible, plead your case, FORCE your insurance to WORK for YOU!

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