The Basics of Auto Insurance
Auto insurance policy was designed with the objective of protecting individuals if there is an automobile accident or loss of vehicle or loss to the vehicle as a whole.
The two main reasons why people need to buy auto insurance can be described as Firstly, people need to get protected against any perils if in case they damage some property of others or wound someone in the course of using their automobile.
Secondly, people also needs protection when injured themselves or wounded by someone else or any damage to their vehicle by accident or other cases like theft or fire.
Personal Auto Policy or PAP is a policy through which the homeowners can cover their automobile risks because this is excluded in the automobile coverage and needs to be covered separately.
PAP is also referred as a package policy since it contains not only the Property coverage but also the Liability coverage.
It is essential to know the details covered in a PAP.
The Personal Auto Policy consists of a Declaration page and a policy form.
You can observe four separate coverages in the Policy form.
Each of these four coverages will have its own insuring agreement along with the exclusions and conditions needed.
They can be explained as: Part A contains the Liability Coverage - This coverage could be either written alone or included along with any of the remaining three coverages.
It provides coverage for both bodily injuries and property damages to other people for which you will be responsible.
This holds up to a certain limit, which the policy might include as a condition.
Part B is the Medical Payments Coverage - This coverage is not obligatory, but it might only be written when the policy involves Liability Coverage.
This coverage provides medical coverage up to certain limits, as will be mentioned in the policy.
Part C covers the Uninsured Motorists Coverage - This coverage can only be written in combination with the liability coverage.
And this is subject to laws that may vary from one state to the other one.
This is compulsory in some of the states; whereas in other states, the insured may eliminate this coverage in writing.
This part offers protection against any damage to you or your fellow passengers or your automobile due to an uninsured driver.
Part D is the Coverage for Damage to Your Vehicle (Physical Damage) - This coverage comprises of two parts namely, Collision and Other Than Collision and might be written either separately or along with liability coverage.
The Personal Auto policy may be provided to a single individual or as a joint (husband and wife living together in the same house).
Almost all the Personal Auto policies are written including all of the existing coverages, and the insured need not separately purchase each.
The above mentioned is an outline detailing the regularly offered coverages.
You need to be aware of all the exclusions, conditions and limits to all the mentioned coverages to make better use of them.
The two main reasons why people need to buy auto insurance can be described as Firstly, people need to get protected against any perils if in case they damage some property of others or wound someone in the course of using their automobile.
Secondly, people also needs protection when injured themselves or wounded by someone else or any damage to their vehicle by accident or other cases like theft or fire.
Personal Auto Policy or PAP is a policy through which the homeowners can cover their automobile risks because this is excluded in the automobile coverage and needs to be covered separately.
PAP is also referred as a package policy since it contains not only the Property coverage but also the Liability coverage.
It is essential to know the details covered in a PAP.
The Personal Auto Policy consists of a Declaration page and a policy form.
You can observe four separate coverages in the Policy form.
Each of these four coverages will have its own insuring agreement along with the exclusions and conditions needed.
They can be explained as: Part A contains the Liability Coverage - This coverage could be either written alone or included along with any of the remaining three coverages.
It provides coverage for both bodily injuries and property damages to other people for which you will be responsible.
This holds up to a certain limit, which the policy might include as a condition.
Part B is the Medical Payments Coverage - This coverage is not obligatory, but it might only be written when the policy involves Liability Coverage.
This coverage provides medical coverage up to certain limits, as will be mentioned in the policy.
Part C covers the Uninsured Motorists Coverage - This coverage can only be written in combination with the liability coverage.
And this is subject to laws that may vary from one state to the other one.
This is compulsory in some of the states; whereas in other states, the insured may eliminate this coverage in writing.
This part offers protection against any damage to you or your fellow passengers or your automobile due to an uninsured driver.
Part D is the Coverage for Damage to Your Vehicle (Physical Damage) - This coverage comprises of two parts namely, Collision and Other Than Collision and might be written either separately or along with liability coverage.
The Personal Auto policy may be provided to a single individual or as a joint (husband and wife living together in the same house).
Almost all the Personal Auto policies are written including all of the existing coverages, and the insured need not separately purchase each.
The above mentioned is an outline detailing the regularly offered coverages.
You need to be aware of all the exclusions, conditions and limits to all the mentioned coverages to make better use of them.
Source...