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Insurance protecting you from losses regarding using automobiles and protecting you from financial loss in the event of an accident is auto insurance. Here are a wide variety of coverages that can be purchased depending on the wants and needs of the insured. This is a promise between you and your insurance provider. Your liability coverage can include physical injury, damage to property, medical expenses, and costs associated with physical damage (such as those covered under collision or comprehensive policies). The individual insured must pay for the premium; your insurance company then will pay any losses as outlined in your official policy.

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Insurance / Auto Insurance
Various damages are paid for by the different coverages. If your vehicle is damaged or stolen, then property coverage comes into play. If you become legally liable for bodily injury or property damage, then liability coverage would pay for this damage. Finally, medical coverage will help pay for the treatment of injuries sustained in an accident, physical therapy or other rehab, and possibly for lost wages or funeral expenses. Later, this will be discussed in-depth.

An automobile insurance policy consists of six areas of coverage. It is mandatory in most states to have some, although not all, of these coverages. Additionally, your lender may have requirements if you're financing a car.

Detailed here, are various portions that are included into a basic auto policy. The prices of each coverage are separate.

1. Bodily Injury Liability
Injuries that you, the designated driver, or policyholder, cause to someone else are covered. It also means that you and other family members listed on the policy will be covered when driving someone else's car with their permission.

If you are involved in a serious accident, you may be sued for a large amount of money; because of this, it is crucial to have enough liability insurance. In order to protect assets such as your home and savings, definitely consider buying more than the state-required minimum.

2. Medical Payments or Personal Injury Protection (PIP)
Another consideration is coverage associated with Medical Payments or Personal Injury Protection (PIP), which will cover the treatment of injuries to not only the driver, but also any passengers in the car of the policyholder. PIP covers many things, which can include payments for medical services, lost wages, and even the cost of services by the person who was injured in the accident. It is also a possibility that this will pay for funeral expenses.

3. Property Damage Liability
You'll be covered for damage that you, or any persons whom you gave permission to drive your automobile, causes to another's property. It also covers various other types of property damage, but this damage is usually to the other person's car. Other items that you could possibly hit that would be covered would be lampposts, telephone poles, fences, buildings, etc.

4. Collision
Naturally this means that damages to your auto are covered stemming from a collision with another auto or with an object, or from flipping over. Damage caused by potholes is also included in the coverage. More often than not, collision coverage has a deductible that ranges from as low as $250 and can be as high as $1,000. The higher your deductible, the lower your premium will be. Your collision coverage will reimburse you for the costs of repairing your car, less the deductible, even if you caused accident. Your insurance company may try to recover the amount of money you received from the driver's insurance company if you're not at fault. Your deductible will be reimbursed if they succeed.

5. Comprehensive
Comprehensive coverage pays you back for losses from theft or from damage caused by anything that does not involve a collision with another car or with an object. Comprehensive coverage would cover instances like fire, damage from missiles, natural disasters, riots, or contact with animals such as birds or deer.

You may want to opt for a higher deductible on comprehensive insurance than the usual $100 to $300 in order to lower your premium. A cracked or shattered windshield will be reimbursed by this kind of insurance. Glass coverage, with or without a deductible, is sometimes available through certain companies.

If you have a car loan, your lender may insist you carry collision or comprehensive coverage until your loan is paid off although states do not require it.

6. Uninsured and Underinsured Motorist Coverage
If you, a member of your family, or a designated driver are hit by an uninsured or by a hit-and-run driver, this coverage will reimburse you.

When a driver who is "at fault" does not carry enough insurance to pay for your entire loss, then underinsured motorist coverage can help protect you. This coverage also protects you if you are ever hit as a pedestrian.

Requirements for auto insurance are different. If you are unsure about what is required in your home state or country, or you will be moving soon, you should educate yourself about your state / country's minimum auto insurance requirements and then attempt to exceed them. Keep in mind that having only the minimum requirements will not cover your losses in the case that you are in a serious accident.

Most all auto policies cover you for either six months or for a year. When it is time to renew the policy and pay your premium, your insurance company will notify you by mail.