car insurance: basic coverages in car insurance policies

Auto insurance policies are made up of several different coverages. In general, policies are composed of liability, collision and comprehensive coverages. This is what represents each coverage type:


* Responsibility. Coverage of liability covering the damage that makes others for both body and damage to property, are represented by three numbers. For example, 30/40/10 means you have $30,000 for bodily injury coverage "per person", $40,000 in coverage for bodily injury "by accident" (when more than one person has been injured) and $10,000 in coverage for damage of property "by accident". Liability coverage is required by most States and each State has different quantities of them required "minimum". Worth for things such as the costs of legal defense, lost wages, medical expenses, pain and suffering and repair or replacement of another vehicle.

* Collision. Collision coverage pays to repair or replace your vehicle. It is usually the most expensive part of the car insurance premium. After an accident, the insurance companies will have access the damage and decide if it makes more sense to repair or replace the vehicle. When a car totals (heavily damaged or destroyed), insurance companies can pay the actual cash value (ACV) of the car. The ACV is calculated taking the replacement cost of the car and subtracting the amount of depreciation in the value of a car.

* Integral. Comprehensive coverage pays for damage not caused by an accident as fire, theft or hitting an animal. This type of coverage also has a deductible and most insurers will only pay for the value of the vehicle by the accident. As a general rule, check the value of the car to decide how much coverage complete to buy. Cannot be profitable have collision or coverages integral on cars worth less than $1,000, because any claim you make may not substantially exceed annual cost and deductible amounts.


Other types of coverage:


* PIP / no-fault / medical. Protection of personal injury or PIP, offers coverage for medical expenses if the driver or other individuals covered by the policy is wound in an automobile accident. Often called coverage without fault because it pays the expenses doctors no matter that it caused the accident. PIP coverage pays hospitals, doctors, trauma centers and other medical service providers directly for treatment of injuries caused by car accidents. It also pays off for medical equipment needed due to an accident.

* Uninsured / subasegurado motorists. This type of coverage is required in many States and pay by their injuries (and possibly damage to property) If you have an accident with someone who does not have adequate insurance or someone he hits and flees the scene. National Association of Insurance Commissioner (NAIC) website (http://www.naic.org/state_web_map.htm) provides links to State insurance departments. Information about the consumer to see if your state requires this type of insurance

* Supplemental. Addition of supplementary insurance coverage to your basic auto insurance policy (for example, trailer rental refund, repair or car) can save you money. Many insurers offer additional coverages for a few dollars a month.