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Optional Auto Insurance Coverage
By Christian

For most drivers, basic liability coverage is enough to satisfy their insurance needs. However, there are additional forms of insurance available for varying circumstances. This article will discuss the optional policies that you can purchase.



There are a many forms of automobile insurance outside of
typical, state mandated liability coverage: Medical Payments Insurance,
Personal Injury Protection (referred to as "PIP" - covers a broader
area, such as lost wages, funeral expenses, and pain and suffering), Collision,
Comprehensive, Gap Insurance, Uninsured and Under Insured Motorist.



 



Medical Payments Insurance - This type of insurance coverage
pays for medical bills (for you or anyone else) up to a certain amount arising
from the use of your vehicle regardless of fault. Theoretically, because it
pays regardless of fault, the insurance would cover your medical expenses if
you were to crash your car into a fencepost. This type of insurance is usually
sold in increments of $1,000 to $5,000. The coverage extends to your immediate
family members (who reside in your household) while they are passengers in
another person's car, and would cover medical expenses regardless of the other
driver's own insurance policy. Medical Payments Insurance is also referred to
as "MedPay".



 



Personal Injury Protection - "PIP" insurance
covers the "named insured" along with members of his or her household
who are related by blood, marriage, adoption, and/or foster and step children.
PIP covers medical expenses for injuries sustained in an auto accident up to
three years after the date of the incident. In addition to medical expenses,
PIP can also cover lost wages, funeral expenses, and loss of services (payment
to others for work you can't do). Similar to MedPay, Personal Injury Protection
will cover your medical expenses regardless of driver fault.



 



Collision - This optional form of insurance pays for damage
to your car in an auto accident even if you're the at fault driver (such as
crashing your car into a tree or a telephone pole). Collision insurance would
also cover repairs to your car when you are involved in an accident and the
other driver does not have liability coverage. Although collision does cover
repairs to your car regardless of the situation, there are limits to the amount
of repairs: your insurance company is only required to pay the difference
between the salvage value of your car and the pre-accident cash value of your
car. Let's say your car is worth $10,000 and the salvage value is $1,000. In
this example, your insurance company is only required to pay up to $9,000 in
repairs, regardless of what you think the value of your car is. Collision
insurance does have an optional "replacement cost coverage" for new
or vintage cars. This additional coverage provides for the replacement cost of
the new or vintage car. Although not required by any state, lenders and leasing
companies will typically require clients to carry Collision Insurance.



 



Comprehensive - This type of insurance is very similar to
Collision Insurance; the major differing factor is that Comprehensive covers
damage to your vehicle by an "unknown entity" or "an act of
God". In addition to an auto accident, areas of coverage include the
following: vandalism, hurricane, flood, theft, and fire. Your insurance company
is only required to pay up to the fair market value of your car minus your
policy's deductible. Although

MediGap Advisors Announces Open Enrollment for Medicare Supplement Plans
Open enrollment is now happening for Medicare Advantage Plans. These plans cover expenses not covered by Medicare, and may also include Part D Prescription Drug Coverage. Many consumers are now shopping online for instant quotes and applications. (PRWeb Nov 22, 2008)

Read the full story at http://www.prweb.com/releases/medigapadvisors/medicaresupplementplans/prweb1644684.htm

]]>

PPI an Antidote to Mortgage Arrears Says Burgesses
Figures released by the Council of Mortgage Lenders, detailing an alarming growth in the number of homeowners falling into mortgage arrears, has prompted Payment Protection Insurance lobbyist Sara-Ann Burgess to urge homeowners to purchase cover that pays a monthly income should they lose their jobs. (PRWeb Nov 22, 2008)

Read the full story at http://www.prweb.com/releases/protection/insurance/prweb1651884.htm

]]>

Tiscali Renews Deal with Insurancewide.com to Offer Leading Edge Comparison Service
Insurancewide.com, the UK's original and still the best online insurance comparison service, has signed a fourth annual agreement with Tiscali, the broadband, telecoms and media company, to continue acting as Tiscali's preferred insurance comparison partner on www.tiscali.co.uk. (PRWeb Nov 22, 2008)

Read the full story at http://www.prweb.com/releases/2008/11/prweb1646344.htm

]]>

Making Business Decisions in an Election Year
Regardless of Election Outcomes, Business Owners Can Deploy Tactics That Work to Their Advantage (PRWeb Nov 21, 2008)

Read the full story at http://www.prweb.com/releases/2008/11/prweb1648094.htm

]]>

Big is Not Best as Financial Services Groups Responsible for Majority of PPI Complaints
The Financial Ombudsman Service reports it is handling 100 Payment Protection Insurance complaints a day. "This," points out PPI lobbyist Sara-Ann Burgess, "further fuels concerns that consumers are either unwittingly purchasing cover they don't need or are confused by jargon and taking out policies they will never be able to claim on." (PRWeb Nov 21, 2008)

Read the full story at http://www.prweb.com/releases/protection/insurance/prweb1646184.htm

]]>

not required by any state, lenders and leasing
companies will typically require their clients to carry Collision Insurance.



 



Gap Insurance - This insurance pays for the difference
between what one owes on a vehicle, and what the insurance company claims your
car is worth. For example: you owe $15,000 on a car and you somehow manage to
total the car in an accident. Your insurance company determines your car is
only worth $13,000, so that is all they will pay. You're now stuck paying off a
$2,000 loan for a car that no longer exists. Gap insurance would normally cover
that $2,000 difference. There are some limitations and restrictions for Gap
Insurance. For example: Gap Insurance is typically unavailable on older cars
and not all insurance companies will offer it. It's best to check with your
insurance company to get the full details on Gap Insurance coverage.



 



Uninsured and Under Insured Motorist - Just like the title
states, this type of insurance covers you and your vehicle in case the other
driver is not properly insured and he or she is determined to be at fault. Not
all states require this type of insurance, but a handful do. It's recommended
that you purchase this coverage because if you are involved in a fender-bender
with an uninsured motorist, it is highly unlikely you will receive any payment
for damages to you or your vehicle if the other driver is at fault and
uninsured or under insured. UM/UIM is generally affordable and can be purchased
in varying amounts of coverage.







We strive to provide only quality articles, so if there is a specific topic related to insurance that you would like us to cover, please contact us at any time.

And again, thank you to those contributing daily to our compare health insurance rates website.

MediGap Advisors Announces Open Enrollment for Medicare Supplement Plans
Open enrollment is now happening for Medicare Advantage Plans. These plans cover expenses not covered by Medicare, and may also include Part D Prescription Drug Coverage. Many consumers are now shopping online for instant quotes and applications. (PRWeb Nov 22, 2008)

Read the full story at http://www.prweb.com/releases/medigapadvisors/medicaresupplementplans/prweb1644684.htm

]]>
PPI an Antidote to Mortgage Arrears Says Burgesses
Figures released by the Council of Mortgage Lenders, detailing an alarming growth in the number of homeowners falling into mortgage arrears, has prompted Payment Protection Insurance lobbyist Sara-Ann Burgess to urge homeowners to purchase cover that pays a monthly income should they lose their jobs. (PRWeb Nov 22, 2008)

Read the full story at http://www.prweb.com/releases/protection/insurance/prweb1651884.htm

]]>
Tiscali Renews Deal with Insurancewide.com to Offer Leading Edge Comparison Service
Insurancewide.com, the UK's original and still the best online insurance comparison service, has signed a fourth annual agreement with Tiscali, the broadband, telecoms and media company, to continue acting as Tiscali's preferred insurance comparison partner on www.tiscali.co.uk. (PRWeb Nov 22, 2008)

Read the full story at http://www.prweb.com/releases/2008/11/prweb1646344.htm

]]>
Making Business Decisions in an Election Year
Regardless of Election Outcomes, Business Owners Can Deploy Tactics That Work to Their Advantage (PRWeb Nov 21, 2008)

Read the full story at http://www.prweb.com/releases/2008/11/prweb1648094.htm

]]>
Big is Not Best as Financial Services Groups Responsible for Majority of PPI Complaints
The Financial Ombudsman Service reports it is handling 100 Payment Protection Insurance complaints a day. "This," points out PPI lobbyist Sara-Ann Burgess, "further fuels concerns that consumers are either unwittingly purchasing cover they don't need or are confused by jargon and taking out policies they will never be able to claim on." (PRWeb Nov 21, 2008)

Read the full story at http://www.prweb.com/releases/protection/insurance/prweb1646184.htm

]]>

 
 
 

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