Accident Insurance

Accident Insurance Policies

Accident insurance policies for your auto can be split up into six different types of coverage. Different insurance companies will have different rates for each of these types of accident insurance policies and each type of coverage is priced separately.

Accident insurance policies that cover bodily injury liability cover injuries that you, the designated driver or policyholder cause to someone else. You and family members listed on the policy are also covered when driving someone else's car with their permission. It's very important to have enough liability coverage included in your accident insurance policies, because if you are involved in a serious accident, you may be sued for a large sum of money. It may be wise to consider buying more than the state-required minimum to protect assets such as your home and savings.

Medical payments or personal injury protection (PIP) can also be included in accident insurance policies. This coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car. When this coverage is added to accident insurance policies it can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an accident.

Adding property damage liability coverage to accident insurance policies pays for damage you (or someone driving the car with your permission) may cause to someone else's property. Most times this means damage to someone else's car; however it also includes damage to telephone poles, fences, buildings or other structures that might have been damaged.

Collision coverage on accident insurance policies pays for damage to your car resulting from a collision with another car, object or as a result of flipping the car over. Collision coverage is generally sold with a deductible of $250 to $1,000-the higher your deductible, the lower your rates will be. Even the person covered is at fault for the accident, collision coverage will reimburse the costs of repairing your car, minus the deductible. If you're not at fault, your insurance company will try to recover the amount they paid you from the other driver's insurance company. If they are successful, you'll also be reimbursed for the deductible.

Accident insurance policies can also include comprehensive coverage. This coverage reimburses the policy holder for loss due to theft or damage caused by something other than a collision with another car or object. These causes could be fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer. Comprehensive coverage will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage with or without a deductible.

Lastly accident insurance policies can include uninsured and under insured motorist coverage. Coverage such as this will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver. Under insured motorist coverage added to your accident insurance policies is very helpful when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian.

Accident insurance policies can be confusing. Make sure to understand all of your coverage options and what each of them will cost. Call several companies or get online quotes to get the most coverage for your money and be sure to deal with a reputable company.