Automobile insurance standard coverage is the basic amount of insurance coverage that is required by law in order for an individual to legally operate a motorized vehicle. You can simply it even further with the blanket statement as being the mandatory amount of auto insurance coverage a driver must possess.
The most important part of anyone’s car insurance policy is the liability coverage. This coverage protects the consumer against the cost of damages and injury that is a direct result of that same consumer if they are the cause of a vehicular accident. For instance if you’re driving down the road and accidentally run into another person’s car this insurance coverage will pay for the damages that result due to the accident.
The liability coverage is further broken down into two subsections. The first is bodily injury liability. This covers and personal injury inflicted by yourself upon others during a car accident. The second subsection is property damage liability. As you may have guessed this is your insurance protection against any damage you cause to another individuals property, usually their car.
Although coverage amounts can vary it is generally suggested that a good baseline of automobile insurance standard coverage should be 100/300/100. This can be read as $100,000 worth of bodily injury caused to another person, $300,000 towards bodily injuries for everyone involved and $100,000 for property damage. With rising medical costs and outrageous car prices this would be the absolute minimum insurance protection I would personally carry in my automobile insurance standard coverage. However, each state is different and you will need to check to see what their car insurance laws constitute as a minimum coverage amount.
If you are in a financial crunch and need a way to save money on your insurance policy try to avoid retaining only the minimum amount of coverage required by your state. Instead try raising your deductible amount (the amount you pay first in the event of an accident before your insurance company kicks in with its payment). You will find that by raising the amount $500 or $750 will significantly lower the monthly costs of your automobile insurance standard coverage.
Two other policies that exist include the medical payments insurance which provides for the immediate treatment of injuries sustained during an auto accident. Anyone riding in your vehicle to include yourself is covered, regardless of who is at fault for the accident. The second policy is commonly known as PIP or personal injury protection, is similar to medical payments coverage, but usually provides broader coverage. Many PIP policies provide compensation for lost wages, funeral expenses, and pain and suffering. Again you will need to check with your state insurance laws for further clarification if you are required to have this additional coverage.
Finally as a safety measure against law breaking individuals who illegally drive without insurance there is uninsured motorist insurance when the other driver has no liability coverage and underinsured motorist coverage which pays for the cost of your injuries that exceed the other driver’s coverage maximum. As before with the PIP coverage you will need to make sure whether or not your particular state requires these forms of coverage as part of their automobile insurance standard coverage.
By: Tim Gorman
Posts Tagged ‘Automobile Insurance’
What Is Meant By Automobile Insurance Standard Coverage?
Facts About Insurance
Insurance is a trillion dollar business that employs more than 2 million employees. Many insurance companies expect their employees to take continuing education courses to improve their people skills and their knowledge of the industry. The vast majority of policies are provided for individual members of very large classes. Automobile insurance, for example, covered about 175 million automobiles in the United States in 2004 industry.
Agencies and brokerages sell insurance policies for the carriers; the carriers assume the risk associated with annuities and insurance policies and assign premiums to be paid for the policies. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer will be able to pay claims. The insurance rate is a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage. Insurance is an essential part of running any business.
Flood risk to 500,000 homes in the UK could become uninsurable unless flood protection work is stepped up, according to a warning today. The dramatic change in weather patterns all over the world has increased the cost of insurance dramatically leaving some home owners more at risk than ever before.
Insurance companies are paying out less in claims in relation to premiums collected than any time in the last 20 years, but most people would expect them to have paid more out. Gas prices are causing people to drive less, and driving less may lead to lower car insurance rates.
By: Richard Heap
Let’s Save Money With Online Insurance Quotes
Believe it or not everyone can save money with online insurance quotes. In fact, if you have not tried the new online insurance quotes system you are probably throwing away money every month or every six months.
The big thing with insurance companies is that they have always been relatively competitive. In fact, it was often the insurance representative that was the one who was competitive and was out there pushing their rates and lowering their commissions just to get the insurance sale. Now, with the advent of the Internet all of the insurance companies have been able to lower their overhead, and sell insurance online.
So this means no matter what type of insurance you’re looking for there’s a good bet that you can save money by using the online insurance quoting system. You’ll simply enter in some simple information in most situations, and then get a quote estimate.
They may want the e-mail you later with more concrete estimates as they check out a few records. It doesn’t matter whether it’s health insurance, dental and eye insurance, car and truck insurance, life insurance, homeowners insurance, or any other type of insurance, you can get all of these types of insurance directly online. (more…)