Auto Insurence Guide

By : Sudarma
An auto insurence policy can, but does not need to cover six areas of risk. Each area of risk will be priced separately on your policy. It is up to each state to decide the minimum coverage you must take in each risk category of your auto insurence.

Bodily injury liability is the first category of risk. This concerns the injury you might cause to others. It is wise to take a high amount in this category if you own a home.
The higher amount will cover you in case an injury to others results in a lawsuit putting your home at risk. There is a medical risk category, some states call it Personal Injury Protection (PIP). This auto insurence category covers the driver and any passengers in the car. Depending upon your auto insurence coverage it can include medical payments, your lost salary and in its broadest interpretation, covering the services performed by someone injured in your auto.

Property damage liability is a risk that will cover any destruction of someone's property. This would cover the driver knocking down a person's fence or driving onto their property and causing damage. A key part of an auto insurence policy is called collision. Simply put this is the damage to the policyholder's car when involved in a collision.

Auto insurence also consists of comprehensive. Like collision you may have a choice of deductibles for this risk. It covers damage to the auto that is not a result of a collision. It includes such things as fire, theft, floods, or if your car is damaged by a riot. Uninsured motorist coverage will pay for the driver's injuries if the other driver has no auto insurence.

Auto insurence differs from state to state. No state will require coverage in all six areas mentioned. Many states require a minimum in medical, property damage and bodily injury.

I wrote a guide you may be interested in reading: global life insurance and liability insurance for small business

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