Understanding Your Car Insurance Agreement

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According to Houston Overhead Door, a provider of affordable commercial doors, when you own a car, all states require you to carry a minimum amount of auto insurance. If you finance a loan for a car, the lender may also require additional coverage to protect itself in the event your car is damaged or destroyed. Your monthly payment is dependent on the number of features you choose to include in your coverage. Due to not understanding the language or intent of their car insurance agreement, many people have inadequate coverage. It’s important to know what you are signing up for so you receive the benefits you expect if you ever have to file a claim.

Liability Insurance is Required

Liability insurance is the term used to describe financial protection for bodily injury to others, property damage, and to protect yourself against damage caused by uninsured motorists. According to Houston Overhead Door, a provider of roll up doors in Houston, even though the law requires anyone who owns a car to carry insurance, some people choose not to because they don’t want to pay for it or their license has been suspended for violations and no one will insure them.

Bodily injury coverage pays the medical and other expenses of people who were injured by an accident that you caused. Property damage pays the cost to repair damage you caused to another vehicle, trees, fences, and other types of personal property. The uninsured motorist portion of your liability coverage pays for your expenses if you are in an accident with a person without insurance or are the victim of a hit-and-run collision. You also have the option of adding a rider for under-insured motorists. This covers a larger portion of your expenses when the other person involved in the accident has insufficient insurance coverage to reimburse you.

If you live in a state with no-fault laws, your insurance policy may include personal injury protection and residual bodily injury liability coverage. These provide financial payments to passengers in your car, regardless of who was at fault. Additionally, you are protected from financial loss if someone else was driving your car and got into an accident.

Insurance Coverage for Your Vehicle

While liability insurance is the minimum you need to carry, you can also choose coverage for your vehicle itself. Collision coverage pays for damages when you collide with anything except another car. Examples include a tree, pole, house, or road sign. Comprehensive coverage pays you for vehicle damage unrelated to a collision, such as vandalism, severe weather, or theft.

Optional Insurance to Consider

Most insurance companies also offer several types of optional coverage. With medical payments coverage, you or your family receive reimbursement for funeral or medical costs for yourself or others killed or injured while riding in your car or driving it. Examples of expenses that may be covered include chiropractic care, dental costs, and the cost of surgery to repair injuries received in the accident. However, you should check with your health insurance provider to make sure that some of these things aren’t already covered under that policy.

Rental car reimbursement, towing services, and emergency roadside assistance are additional popular features that are typically inexpensive. Be sure to ask your agent for an explanation of all types of coverage before you sign a binding contract.

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