Auto Insurance Coverage in America
Accidents are one of those annoying side features of life that we have all slowly come to accept. Accidents are even worse when they involve vehicular damage. Depending on the factors leading up to the accident, the resultant damage can be simple or severe. From a financial point of view, none of this is of much concern as long as you are insured. Auto insurance provides relief for car owners in New York in the event of an accident. However the type of insurance afforded to you will depend on the type of coverage you purchased.
There are different types of insurance coverage available in America.
Liability insurance coverage is one of such. In liability coverage, insurance is afforded to the any claims against the policy holder. What this means is if you had an accident with another car, the insurance company will handle the damages your victim received. There are instances where this rule is changed. In scenarios where the affected victim lives at the same address of the insurance holder the resultant claim is disqualified. Liability coverage covers only the car of the holder. If the individual was to get involved in an accident with another car this type of insurance will not cover him. Liability insurance is generally extended to cars rented by the policy holder.
Liability insurance can be paid in two different ways. Combined single limits and split limits. The difference between both packages lies in how payment is made in the even of a claim. Single limits are treated with a single payment which encompasses all that is defined by the coverage package. Split limits payments are divided into two—those involving body damage and those involving property damage.
Another coverage pattern offered by Insurance houses is the Full coverage package. Unlike Liability damages, Full coverage provides payments for the policy holder’s car if the vehicle gets involved in an accident. Depending on the extent of the damage money might or might not be given to repair the car. If the car is found to be repairable money is released towards repair. If the car is found to be beyond repair, money is then issued for a new car. Full coverage is usually insisted on by car dealers when a car is purchased via car loan. This ensures that both parties are protected in the event of an accident.
Comprehensive coverage provides insurance for car accidents that do not result from collisions. Say a tree decides to drop on your car, or a tsunami sweeps your car half way across the Atlantic, by purchasing this coverage you are qualified for insurance.
Whatever coverage you decide to adopt the importance of car insurance cannot be overemphasized. Car insurance guarantees that you are protected in the event of an accident. Various insurance houses have different quotes. It is well worth the research to find which insurance house meets your requirement before purchasing a policy.