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Companies that sell car insurance provide their policyholders with the chance to add specific options to their policies. Each option provides the benefits that are linked to a unique type of coverage.

Liability coverage

This is something that a policyholder buys, but hopes that it will not be needed. It covers the cost of injuries or damages to another person’s vehicle, if those have been caused by the policyholder’s negligence. In other words, this coverage serves as protection against claims.

Uninsured motorist coverage

Drivers that pay for this coverage give liability protection to an uninsured motorist, if such a driver happens to collide with their vehicle. The policy places a limit on the amount of money paid for any damages or injuries. Thus, the policyholder must cover any losses that exceed that stated limit.

Personal injury protection (PIP)

Insurance companies sell PIP coverage in states that have a no-fault system. The PIP coverage guarantees the payment of injuries, regardless of who caused a given accident. The same companies also sell residual body injury liability. That optional coverage protects the option-holder, if he or she gets sued, unless the size of the claim rises above a certain threshold.

Collision coverage

This type of coverage has been available to policyholders for decades. It covers the cost of physical damage to the policyholder’s vehicle, as caused by a collision. Along with comprehensive coverage, the collision option determines the size of the policyholder’s deductible. Comprehensive covers any damage that was not caused by an accident.

Other options

Towing/emergency/road service: This pays for the cost of towing a damaged or malfunctioning automobile to a service station, or other appropriate location.

Medical payment coverage: This covers the medical expenses of any drivers that have been given permission to sit behind the insured vehicle’s steering wheel. It also covers the medical expenses for any passengers. This option would cover any passengers on Medicare.

Rental car coverage: This pays for damage to a rented automobile. Policyholders that purchase such coverage should understand that it comes with a limit. The policy provides details on the daily maximum for the provided coverage.

A car insurance company does not plan to encourage the renter of an automobile to abandon that set-of-wheels, if it gets damaged. It agrees to pay only a given amount of money each day that the damaged auto is in the repair shop, as per an injury lawyer in Hollister.

Anyone that plans to rent a car should note the fact that insurance companies do not have an option that covers the loss of a rented vehicle. Rented vehicles are supposed to be returned to the rental agency. A customer that fails to carry-out that task becomes responsible for the lost vehicle’s price.