Car insurance is the most bought type of insurance in the United States of America. The country has much more motor vehicle than people and a lot of States make it law that people need to have car insurance. With so many people demanding insurance it will always be best to be informed about the various aspects of motor vehicle insurance. To be informed, the article will examine the different types of motor vehicle that exist on the consumer market.
Bodily Injury Liability is an insurance policy that covers drivers of another car. If you meet in accident and the other driver is injured then Bodily Injury Liability will cover the medical costs of in the case the other driver is injured in an accident. This mainly benefits policy holder as he does not have to worry about being sued.
The Medical Payments or Personal Injury Protection (PIP) insurance coverage is close to the bodily Injury liability mentioned above. The difference between the tow is the fact that the policy holder and associated passengers are covered in the case of an accident. This means they are entitled to have their medical bills, loss of wages and even death is covered.
Under Property Damage Liability car insurance policy, the motor vehicle insurance company will cover the cost of repairs to the other party's motor vehicle in the event of an accident. With this coverage the other individual's damages will be paid for by the insurance company, while the policy holder would have to pay for his own damage from his own pocket.
The Collision insurance policy is one of the most common and cheapest motor vehicle insurance policies available. With collision the car insurance company will pay for the damage or repairs if another driver crashes into you. This usually requires drivers to have a deductible and once the deductible is paid, the insurance company will pay for the rest.
Comprehensive coverage is another popular policy for motor vehicle owners. With comprehensive coverage the car is covered from a wide array of things. The car will be protected from fire, theft acts of God and collision with other vehicles. This policy requires individuals to have a deductible and once the cost is taken from the deductible.
Uninsured and Underinsured Motorist Coverage will usually protect the policy holder in the event that someone with no or insufficient insurance crashes into his vehicle. If it happens to be a case where it was a hit and run, then the policy holder will be protected.
The breakdown of the different types of car insurance policies available helps to make understanding motor vehicle insurance easier. You have looked at Bodily Injury Liability, Medical Payments or Personal Injury Protection (PIP), Property Damage Liability, Collision, Comprehensive, Uninsured and Underinsured Motorist Coverage. In analyzing each policy we get to see what each one has to offer. In doing so it allows the potential purchaser of insurance to have the best information available for making the choice on their motor vehicle .