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Bodily Injury Liability, Collision, Comprehensive, Property
Injury Liability. Do you know what these terms mean? If you are
currently paying for any type of auto insurance, then these are
some terms you should know to maximize the benefits of your
plan(s).
Bodily Injury Liability. If you were at fault in an accident and
others involved needed to go to the hospital and/or lost wages
from missing work, those costs would come out of your pocket if
you are not insured with Bodily Injury Liability. Anyone will
soon realize how quickly those amounts can add up to. Many
states require you to carry Bodily Injury Liability. This type
of coverage can also help you in the event the other party takes
legal action against you.
Collision Coverage. In the event you need repairs or
replacements if your vehicle collides with another vehicle or
property, you'll need this. The higher the deductible you elect,
the lower your premiums will cost you. If you're at fault for
something, well of course it would still be an accident, as I
doubt you'd plan to run into that guard rail, but how much would
you be able to afford to pay out of pocket for repairs? Don't
forget to check if this coverage is available in your plan!
Comprehensive Coverage. This is the coverage that pays for
damage caused from falling objects, fire, certain natural
disasters, theft and vandalism.
Property Injury Liability. Can you imagine how much it might
cost should you accidentally drive into someone's house? You
wouldn't want to be caught without property damage insurance
should you need to pay for repairs to another vehicle, building
or anything else you might hit. As they say, you can never be
too sure what you may run into while driving!
With these different types of liability coverage, you'll quickly
discover that unfortunate accidents soon become less dreadful
then they seem. For example, imagine if you crashed into the
rear-end of another driver. Your liability coverage will kick in
and pay for the damages that you caused with your insured
vehicle. Imagine having to pay those damage costs yourself out
of pocket! It's important that you understand the basics of what
you are paying for and why it is necessary. By knowing these
technical terms, you can make sure your auto insurance coverage
is as complete and reliable as possible.
About the author:
Dr. Drew Henry operates a network of auto-related websites,
including World Of
Used Cars, I Buy My
Car and New Hybrid
Cars. Visit his sites today for more articles.
Written by:
Dr. Drew Henry
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