What are the parts of a Basic Auto Policy?

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<h1>What are the parts of a Basic Auto Policy?</h1> by del go <div align=justify>Your <A href="http://www.insurancehelp101.com/auto_insurance.shtml">auto policy</A> may include six coverages. Each coverage is priced separately. 1. Bodily Injury Liability This coverage applies to injuries you, the designated driver or policyholder cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission. It’s very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets such as your home and savings. 2. Medical Payments or Personal Injury Protection (PIP) This coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs. 3. Property Damage Liability This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else's property. Usually, this means damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures your car hit. 4. Collision This coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $250 to $1,000—the higher your deductible, the lower your premium. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you're not at fault, your insurance company may try to recover the amount they paid you from the other driver’s insurance company. If they are successful, you'll also be reimbursed for the deductible. 5. Comprehensive This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer. Comprehensive insurance is usually sold with a $100 to $300 deductible, though you may want to opt for a higher deductible as a way of lowering your premium. <A href="http://www.insurancehelp101.com/auto_insurance.shtml">Comprehensive insurance</A> will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage with or without a deductible. States do not require that you purchase collision or comprehensive coverage, but if you have a car loan, your lender may insist you carry it until your loan is paid off. 6. Uninsured and Underinsured <A href="http://www.insurancehelp101.com/auto_insurance.shtml">Motorist Coverage</A> This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver. Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian. How is the price of my insurance determined? </div> Article source: <a href="http://www.ArticlePros.com/automotive/Automotive-Insurance/article-79158.html">ArticlePros.com</a> <table align=center width=550 cellspacing=1 bgcolor=silver cellpadding=5> <tr bgcolor=antiquewhite> <td> About the author Insurance Help 101 was developed as one stop insurance guide. We are constantly updating our information in hopes of providing helping our visitor with the complex process of purchasing insurance. We understand that purchasing insurance can be very difficult and very stressful, but our belief is that it doesn’t have to be . MyInsuranc101.com was created to bridge the gap between you the consumer and the thousands of Insurance Agents and Brokers out there. Once your information is submitted it is sent to an Insurance Broker or Agent in your area with expertise in the type of insurance coverage you are looking for. Our brokers all have a over 25 years of combined industry experience, so we are confident that you will receive the highest level of professionalism and service. We welcome your feedback and hope that whenever you have a question regarding insurance Insurance Help 101 is the first website that comes to mind. <a href="www.insurancehelp101.com" target="_blank" title="will open in new window" class=blue>www.insurancehelp101.com</a> <input type=button class=asubm value="Other articles by del go" onclick="document.location='http://www.ArticlePros.com/author.php?del go'" style="height:20px;cursor:hand"> </td> </tr> </table>