Diversified Insurance Protection for Your Vehicle

Not everybody who owns a car knows all about auto insurance. Insurance is a wide subject and can be extremely confusing at times. However, most of the US states has made auto insurance coverage mandatory. So, if you're a vehicle owner yourself, you must be familiar with the basics of auto insurance.Why will you need auto insurance?
Auto insurance is regarded as of fundamental importance for the vehicle owners. Not only since the states has made coverage mandatory, but also since you need protection yourself. Vehicles are expensive assets. What if yours get stolen? Who'll pay for the repairs if your car gets damaged in an accident? Moreover, medical bills can run high if there are injuries after an accident. The other party will come after you for the damages and injuries as well, if you were responsible for the accident. All these might strain you out financially. Having an auto insurance policy will be beneficial in similar circumstances, since it will provide you with the much needed financial assistance.However, there are several forms of auto insurance offered by the insurers. Since insurance needs vary from person to person, apparently you won't need all of them. It's necessary to identify which form of coverage will suit you best so that you don't end up paying for an unnecessary one.Basic forms of auto insurance coverageHaving the right kind of coverage at the right time can save you a lot of money. The common forms of auto insurance coverage are mentioned below:

1. Bodily Injury Liability - This form of insurance coverage pays for the third party claims if the driver of the insured vehicle causes physical injury to others. It pays for the medical expenses, pain and suffering, lost wages etc. to the injured party.
2. Personal Injury Protection - This form of coverage pays for the medical expenses and injuries to the insured party itself, no matter who is at fault during the accident. It also compensates the policyholder and the passengers in his car for loss of income, loss of service and funeral expenses.
3. Property Damage Liability - The form of insurance coverage which pays for the third party property damages, if the insured individual causes the accident.
4. Collision coverage - As the name suggests, this form of auto insurance pays for the accidental damages to the vehicle. It pays for the damages and costs for repair, regardless of who is at fault for the collision.
5. Comprehensive coverage - Compensates the vehicle owner for the damages or losses to the insured vehicle, if it's caused by theft, vandalism, hail, flood, fire, falling objects etc. However, it doesn't pay for the damages if it's caused by an accident or car overturn.
6. Uninsured or Underinsured Motorist coverage - Compensates the policyholder if the other party is at-fault for an accident, and either doesn't have insurance to pay for the damages or his coverage limits is inadequate. The uninsured motorist coverage also pays for the losses, if the accident had been caused by a hit-and-run driver. You can also seek compensation if you were a pedestrian and were still hit by the other driver.
7. Rental Reimbursement coverage - This form of auto insurance coverage pays for the rental car expenses, if your vehicle is damaged or is under repair after an accident.

Apart from the above mentioned forms of auto insurance, there are several others as well, like the Gap coverage or insurance coverage to pay for the emergency road services. States specify only the limits of liability coverage that a vehicle owner must have. It's sensible to buy more insurance protection than the minimum state recommended limits. If the accidental damages are more than your limits of coverage, you may need to bear the additional costs on your own.

Juanita Martinez is associated with the AmPmInsure Community and has been offering her suggestion on insurance to the community since 2007. Besides this, she has also written contributory articles for various financial sites. Few of her articles would include names like 'Ho3 Policy: An open peril insurance', 'Insurance for fire damages' and 'Buying life insurance on someone without their consent'.