Automobiles brings a new era of transport system. It becomes the easiest and the cheapest medium of transport at now. But it is not too safe for its passengers because driver of an automobile can be fallen an accident for any reason which can bring a huge loss to the owner of the automobile. So to reduce the loss insurance plan has grown in this sector. If we look at the accident rate of the whole world we will find that the number of accident of vehicle is enormous. So it will be a great opportunity to have auto insurance for your vehicle to minimize the losses.
What is Auto Insurance? It is a kind of insurance which is purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident.
Which type of vehicle can be covered by this? Most of the companies provide this insurance for all type of vehicles. Such as: trucks, vans, cars, SUVs, heavy trucks and trailers, dump trucks, box trucks, speed boats and even ships too. But it depends on the insurance company.
How many types of insurance plan have in this sector? You will find several types of insurance plan in this sector. The common types of insurance plans are:
· Liability Insurance: Liability coverage is the most basic and foundational coverage in car insurance policies and is required in most states. This coverage ensures that if you are the one at fault in an accident, your liability insurance will pay for the physical injury and property damage expenses of any third parties involved. This coverage includes legal bills. Remember that third parties can sue you for “pain and suffering” damages.
· Collision Coverage: In the case that you are in an accident, collision insurance will pay for the repairs that your vehicle requires. Collision coverage is usually the most expensive coverage that you will have to pay for.
· Comprehensive Coverage: This coverage will pay for any damages to an automobile that were not caused by an accident. Qualifying damages include damages arising from carjackings, vandalism, natural disasters, and hitting an animal.
· MedPay, PIP, and No-Fault Coverage: MedPay will pay for the medical expenses of you and anyone else in your car after an accident, regardless of whose fault the accident was. PIP (Personal Injury Protection) and “no-fault” coverage are other forms of medical payment protection.
· Uninsured and Underinsured Motorists Coverage: UM (Uninsured Motorists) coverage will pay for injuries you have sustained if you are involved in a hit-and-run by a driver who does not have auto insurance, and is mandatory in many states.
· Supplemental Coverage: Rental reimbursement is an add-on that will cover rented vehicles in case of damage or theft. Auto replacement coverage ensures that your automobile will be fully repaired or replaced even if the costs are more than its depreciated value.
But you can find other plans too depend on the company. Most of the company provides these type of plans but some of them has some special plans of their own.
How much it costs to have a plan? It is not to say how much it costs to have a plan. But the main thing is your premium rate will be increased. The main reasons of increasing the rate are: Accident history, driving record, vehicle make and model, annual mileage, vehicle usage, your credit-based insurance score, your age and eligibility for discounts etc. It is really very costly but the thing is it is a legal necessary and also beneficial for you.
How do you make Auto Insurance Claim? If you got an accident, and if you have insurance plan, then it’s time to claim your insurance. First, inform your car insurance company as soon possible after the accident has occurred. Obtain the name and car insurance details of all other parties involved in the accident and then pass these details on to your insurer. You insurers will deal with all communications with the other affected parties on your behalf. If your car has been stolen then report it immediately to the police. They will give you an incident number which you will need to pass to your insurers. Be consistent with you account of what happened, as any deviation in your story could potentially jeopardize the outcome of your claim. Your car insurance company will tell you where to take your car for repairs. Don’t take your car to your local garage hoping that the insurers will cover the costs. Insurance companies normally have approved garages in your area that they use to carry out accident repairs. Keep copies of all correspondence linked with your car insurance claim. Try to keep a record of all forms of communications you receive as you may need to refer to these at a later date.
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