Auto Insurance
Car insurance is a policy with an auto insurance company, in which you agree to pay a premium that covers your protection from financial losses in an event of a car accident. However, other automobiles aside from cars can also be under insurance, like motorcycles, etc.
Owning an auto makes it easier to travel. However, it can also be a source of serious financial liability. Personal liability arising from accidents or cost of repairing or replacing a damaged or stolen auto, can be very costly liability.
Auto Liability Insurance Policy
Auto liability insurance is compulsory based on the laws, requiring car owners to maintain liability insurance as a condition of licensing or use on public roadways. The same with motorcycle insurance for motorcycle owners. Car or motorcycle insurance usually covers a number of coverage in one package policy: property, liability, and medical coverage.
- Property coverage pays for damage to or theft of your car or motorcycle.
- Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
- Medical coverage pays for the cost of treating injuries, rehabilitation and funeral expenses.
The Personal Automobile Policy
The common policy is the personal automobile policy (PAP). The PAP is designed primarily for private passenger cars, but protection can be extended to cover motorcycles and other types of auto. It offers the following coverage:
- Car or motorcycle owner protection against losses from legal liability arising from bodily injury or property damage caused by an automobile accident
- Medical or funeral payments coverage due to body injure(s)
- Physical damage coverage due to collision incidents and non-collision incidents, such as theft, fire, or storm damage
- Uninsured car or motorcycle motorist coverage for injuries sustained in a car or motorcycle accident with an uninsured (or a hit-and-run) driver
- Underinsured car or motorcycle motorist insurance covering the difference between actual losses sustained, and what an insured individual can collect from an at-fault uninsured or underinsured driver, up to policy limits
Aside from the ones discussed, additional insurance coverage can also be included to a basic insurance policy. You can extend the liability to cover non-owned car or motorcycle which standard policy provisions in other cities would otherwise exclude. You can also insure auto such as snowmobiles, motor scooters, go-carts, golf carts, antique and classic cars, where separate policy can be used to cover these vehicles.