If you own a car, then, you may have heard of auto insurance before, you may have even heard of Philadelphia Auto insurance. However, there is still much that you need to know about car insurance for you to have a better understanding on this type of insurance and make knowledgeable decisions on car insurance.
By definition, auto insurance refers to the protection given to an individual to shield him from financial losses arising from an auto accident. In exchange and as part of the contract, you agree to pay given amount of premium for a specified period of time. The type of auto insurance that you get will determine the type of losses covered and the coverage limits. Some auto insurance types cover property while others are for medical expenses while others are for liabilities arising from an accident.
Types of auto insurance
According to the law, every vehicle is required to have some form of auto insurance. Auto insurance is also known as a policy and this policy will be based on many factors. Many policies are combined and used together so as to ensure that all types of losses are covered. There are eight types of auto insurance policies offered and these are:
1. Liability Auto Insurance Policy
This insurance policy covers the policy holder against two major factors which are bodily injury and property damages should an accident occur. On bodily injury, the policy will cover for your medical expenses, any sufferings caused to you, any pain you may experience due to the accident and any losses in wages due to the accident.
On the other hand, property damage refers to any damaged properties, any court case costs arising. The amount to be paid in relation to property damage is often determined by the courts and after analysis of the extent to which the property damage occurred.
2. Collision Auto Insurance Policy
When your vehicle collides with another vehicle or another object, you will be needed to pay for the damages caused by your vehicle. It is at this point that the collision auto insurance policy comes in handy. This is because it will help you in paying for the damages caused by your vehicle during a collision with another vehicle or with an object.
3. Comprehensive Auto Insurance Policy
Comprehensive auto insurance policy pays for the losses occurring due to damages on the insured vehicles. Such losses do not arise from auto accident and include damages caused by factors such as fire, water, wind or even theft.
4. Medical Coverage Auto Insurance Policy
This type of auto insurance policy is meant to cover for all the medical insurance costs and it does not matter whose fault it was that caused the accident.
5. Personal Injury Protection Auto Insurance Policy
This is an insurance policy that is needed in some places and pays for the driver’s medical bills despite the fault of the person who caused the accident. In other words, even if you were the one on the wrong during an accident, the personal injury auto insurance cover will still cater for your medical bills.
6. Uninsured Motorist Auto Insurance Policy
There may be an instance when you may get involved on an accident with another vehicle which does not have any form of insurance coverage. Under such circumstances, only the uninsured motorist auto insurance policy can assist you recover from losses.
7. Rental Reimbursement Auto Insurance Policy
The rental reimbursement auto insurance cover is designated to assist in times when a rental car is damaged in an accident.
8. Under insured Motorist Auto Insurance Policy
This insurance cover pays when you get involved in an auto accident with another vehicle that does not have sufficient liability insurance cover.
What to Consider When Choosing the Right Auto Insurance for You
Do you know what to consider while looking for the right auto insurance for your vehicle? Here are some factors that will help you in choosing the perfect auto insurance for you:
1. Your Type of Vehicle
Different types of vehicles are offered different types of insurance policies. For instance, a passenger vehicle such as a bus will never get the same insurance policy with a cargo truck. In the same manner there are the insurance covers that are ideal for personal vehicles. Therefore, before settling on an insurance policy, ask yourself which type of vehicle you own.
2. Your Driving Record
Are you a good driver or one who has been involved in a series of accidents? Your driving record will very much determine the type of insurance you would wish to have. Many insurance companies will often look into your driving record before issuing an insurance policy. If you have been a reckless driver with many accidents on record, it is most likely that any insurance company will charge high premiums in order to insure your vehicle.
3. Your Financial Capability
How much money are you willing to pay as premium? Different types of insurance policies have different premiums and depending on your budget, you should choose one that fits within your budget. Having the best insurance policy goes beyond costs to making the best decisions and the best you will ever do even beyond insuring your vehicle is ensuring that you are a good driver.
4. Consider the state laws
Different states have different laws. When considering the type of insurance cover for your vehicle, you need to know the laws governing your state as they will determine largely the extent to which your auto insurance cover will help you. Other state laws may need that you pay for any damages you cause to property through auto accident and as such, these laws will help you choose wisely when it comes to your auto insurance attorney.
If you are ever going to choose the best Philadelphia Auto insurance, you will need to be knowledgeable and well informed. Insurance decisions are often hard to make and it will need the help of a professional so that you make the best choices. If you need the best Philadelphia auto insurance service or information, why not contact us today?