Auto Insurance

auto insurance for individuals

Auto Insurance Frederick MD

Automobile insurance is there to provide you with financial protection you need, in case there are auto-related accidents that include damages, loss, or injuries. It is there to protect you, the passengers in your car, other drivers and pedestrians. It can also protect you from financial loss in the event of an accident that damages your car or the property of others. In addition, auto insurance coverage can reimburse you if your car is damaged by fire or other elements, vandalized, or stolen. Since state governments want to ensure the safety and protection of its citizens, driving without automobile insurance is illegal in most states. Not only that, having sufficient insurance coverage for yourself as a driver and for your car is a moral and social responsibility. The reason being, driving without auto insurance – or the ability to personally cover the expense for any damages you may incur – creates a financial risk and hardship for others.

A Basic Auto Insurance Policy Contains Six Types Of Coverage

Liability coverage has to do with the damage you cause to others. This coverage is expressed as three numbers, for example 100/300/100, which means $100,000 in bodily injury coverage per person, $300,000 in bodily injury coverage per accident and $100,000 in property-damage coverage per accident. This coverage is also set up to pay for your legal bills if the accident is determined to be your fault. Because this coverage covers the damage you do to others, most states require a minimum level of coverage. Bodily injury liability covers not only medical bills but also lost wages to the other party, if you are the cause of an accident.

This pays for repairs or replacement of property that you damage or destroy. For example it could be another car, fence or wall. This coverage can also pay for pain and suffering damages if you are due to a car accident.

Collision insurance covers the repairs on your own vehicle if you get in an accident, regardless of fault. If there is significant damage to your car, it is called “totaled”. When repair costs exceed a car’s value, such as more than 70 percent, the insurance company will typically tow the car to a salvage yard and reimburse you the cash value of your vehicle so you can purchase a new car.

Medical payments coverage pays for the medical expenses you and your passengers incur as the result of an injury from an accident. You are also covered when driving someone else’s car or if you are injured when another car hits you. This policy pays regardless of whose fault it is. Personal Injury Protection coverage pays for medical expenses and lost wages for you and any other passengers who are injured in an accident. Not only that, it also covers funeral expenses. However, if you already have good health and disability insurance, you may not need not to purchase this coverage as it may duplicate the coverage you already have.

This coverage pays for any damage to your car that is not due to an accident. It covers natural disasters such as fire, earthquake or flood, vandalism or theft and large animal collisions (eg: hitting an elk or deer).

An Uninsured motorists (UM) policy covers your medical bills if an uninsured driver hits your car or commits a hit-and-run (hitting your car and quickly driving away). This coverage helps when someone causes an accident but doesn’t have enough insurance or funds to cover your medical or other expenses. In that case, their insurance pays its maximum and then your UM coverage pays for the rest, within your policy limit.

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Other Types of Auto Coverage

Rental Reimbursement

This protection can cover the expense of a rental car when your vehicle is damaged or stolen.

Towing and labor coverage

This coverage will pay for towing and any labor associated with roadside service or breakdowns.

Gap coverage

This coverage is for newer vehicles only. It pays the difference between the cash value of your car and the balance left on your auto loan in the event that your vehicle is totaled.