What Are the Types of Car Insurance?
When buying car insurance, it is important to understand how the insurance policy works. The insurance policy is basically a contract between you and the insurance company, that dictates the limits of the coverage that the insurance company is legally obligated to cover. In return for an initial fee, called the premium, the insurance company promises to cover financial loss resulting from perils listed under your policy coverage term. Depending on the specific coverage plan, there are usually several perils covered by the plan, including:
Personal Injury Protection (PIP): this is the standard insurance coverage offered in most states for medical expenses, loss of limbs or paralysis, and funeral expenses caused by an automobile accident. PIP typically pays up to the limit of your policy for the entire cost of treating the injuries sustained by an insured individual. If the injured individual dies, then the insurance company pays the remainder of the funeral expenses. PIP can be used in the event of an automobile accident, but must be purchased separately from an insurance policy.
Personal Property (PP): the contents of a vehicle are not covered by standard insurance. Instead, this type of insurance is offered through an automobile insurance company. Typically, aPP will pay the difference between the market value of your vehicle and the total value of the contents inside. If you were to have a total loss, this would include the cost of replacing the vehicle. A person who has insured their vehicle with an AIS or Commercial Policy may have an advantage in dealing with an insurance company that specializes in this area of insurance.
Collision Damage Waiver (CDW): this policy reimburses you for expenses associated with the repair of your vehicle in the event that it is damaged due to collision with another vehicle or object. It also covers your costs for any damages that occur to your vehicle because of fire, theft, vandalism and weather. This insurance protects you from paying for damages that occur during a covered occurrence. If you use your vehicle in an area that is considered high risk, such as a car lot where there are often large scale accidents, it is advisable to purchase CDW to protect yourself. CDW will also protect against damages that occur because you hit a fence or a pole. Let us know more information about Ice Cream Shop Insurance
Comprehensive Coverage (CC) is often purchased together with Disability, Theft, and Other (DOT) Damages. It provides coverage for damage to the body, as well as for medical payments, lost wages, pain and suffering, and disability income if you are disabled. There are some things that will not be covered with a DOT policy, such as death or dismemberment. If you are injured in an accident for which you are partly or completely disabled, CO will pay your medical expenses and will also compensate your dependent spouse or children. If you have a CO policy but no other insurance policies, then your dependent spouse or dependent children may also receive financial assistance under CO.
A number of things can affect the cost of insurance. The age of the insured, his occupation, his geographic location, and the amount of time he spends driving, among others, may affect how much an insurance policy costs. Insured parties can file a claim with their insurance company for discrepancies with the terms of the contract. Sometimes an insurance company will settle the claim with an agreed upon settlement amount.