Automobile Insurance Companies
Automobile insurance is the contract right of the insurance company which allows the insurer to pay the expenses for third party liabilities in case an insured party is at fault when an accident occurs. Automobile towing service is also called roadside assistance. The automobile insurance industry in the United States is presently a 308 billion dollar industry. In many ways, it is a competitive industry as there are numerous automobile insurance companies that offer various types of insurance plans. There are even insurance plans that are available for the usage of the cars of the drivers.
In most of the cases, when there is an automobile accident, the policy of the insurance company of the person who is at fault does not cover all the costs involved in repairing or replacing the vehicle of the other driver. In such a situation, the person who has the right to be insured through another person’s automobile insurance company will require coverage from another company. Such coverage can take the form of a vehicle damage waiver or a rental vehicle coverage. This article discusses the features and benefits of these two policies.
Vehicle Damage Waiver (also known as a deductible) is an automobile insurance company’s way of reducing their risk when an accident occurs. For every one hundred dollars that the insured pays out of his own pocket, he is required to pay fifty percent of that amount towards the other driver’s claim if there is a damage to the automobile. If the damage to the vehicle does not result in total loss, then the insurance company will cover the remaining percentage.
This liability coverage can be carried together with a compulsory physical damage liability insurance (CDL). This type of coverage involves the provision of the insured’s vehicle with adequate safety measures such as bumpers, a reinforced safety belt and other equipment. If the vehicle becomes a victim in an accident, then both the liability portion and the compulsory physical damage liability insurance will be paid by the insured. However, the CDL will be paid first, because it requires that the vehicle be towed away from the scene of the accident. Furthermore, in certain states, the insured may be required to have uninsured motorist coverage as well. Though most states do not require this coverage, it is recommended that all automobile insurance companies carry it.
The next type of coverage that an automobile insurance company will offer is the bodily injury liability. Bodily injury liability entails the payment of medical expenses for people who are injured in automobile accidents, regardless of who was at fault. Additionally, this coverage extends to the relatives of the deceased as well as people performing work on the insured’s behalf who are injured in such accidents. Property damage liability also comes into play when an insured vehicle is damaged or stolen. Property damage liability insurance is the amount that will be paid by the insurance company to repair or replace the car or other property involved in an auto accident. If the amount of the policy is not enough to cover the full cost, the insurer will have to shoulder part of the bill.
The third type of insurance that an automobile insurance company offers is collision coverage. Collision coverage pays for repairs and replacement of the vehicles involved in an automobile accident that has been damaged due to collisions with another vehicle or object. However, the collision coverage will only pay for the repairs or replacement of the vehicles involved in the accident if the claim was made within a reasonable time after the accident occurred. In addition, collision coverage does not cover items that were in the vehicles at the time of the accident. Also, the collision coverage will only pay for the damages to the automobile itself and will exclude the payments for car repairs that would be incidental to the normal usage of the vehicle. However, comprehensive coverage or fully comprehensive coverage will pay for repairs to the automobile, as well as for any items in the vehicle that are not the subject of a collision claim.
One type of coverage that vehicle owners can purchase to supplement their automobile insurance policy is the minimum liability coverage or minimum liability insurance. Minimum liability insurance protects the policyholder against financial responsibility claims. It also protects the policyholder from the financial responsibility claims that result from the negligence of the other party. Minimum liability insurance requires the policyholder to purchase a level of coverage that is at least equal to the state minimum liability insurance requirements. Policyholders who do not have the required minimum liability insurance or who choose to disregard it may face serious consequences.
Automobile insurance providers offer a variety of coverage options to protect the insured as well as the insured’s property. Some of these coverage options include comprehensive, collision, medical payments, uninsured/underinsured motorists, and personal injury protection. Many auto insurance providers also offer online quotes, making the process of purchasing automobile insurance quick and easy. Vehicle owners should carefully review the options they have available to them before purchasing coverage so that they are sure they are getting the best coverage for the lowest premium cost possible.