Car Insurance Fundamentals

Image Source: www.teenagerstoday.com

According to statistics, the following occurs on the average: every 5 seconds, motor vehicles crashes , every 11 seconds, a person is injured, every 12 minutes, there is a fatal injury. As you head out the door to school, work or to the store these thoughts are scary. This is enough to convince us why auto insurance coverage is so necessary.
National campaigns aimed at increasing safety belt use and reducing impaired driving is partly responsible for reduction of accidents. Now mandated in all 50 states, the seat belt greatly helped reduce the number of persons killed in auto accidents in 2004. Alcohol-related fatalities for the second consecutive year in a row was likewise reduced due to the countrywide campaign for drinking under the influence of liquor.

It is important to familiarize yourself with the basic components of an automotive insurance policy.

There are commonly four (4) primary components:
1. Bodily injury and personal property liability – this is to insure the policyholder against injuries that may be caused to a person or damage to property;
2. Personal injury protection – this pays for the lost wages and medical expenses of the policyholder and other persons injured during an accident;
3. Collision and Comprehensive – collision is against loss or damage in case of accident while comprehensive is against theft or natural disasters;
4. Uninsured motorist – this as the name implies protects the policyholder during accidents with an uninsured driver or a hit-and-run accident.

Source: BankRate.com

People avail car insurance as protection for their car against accidents, robbery or whatever untoward incident that may occur involving their car. What is good about car insurance is that you have choices. The car insurance may cover not just the insured person but also the vehicle and even the third party involved. Different policies for different circumstances are available to fit whatever is your need and how mush you can afford. Car insurance has become necessity nowadays because of the vast protection it offers. So it is no longer surprising that many companies, big or small, are making business out of it.