Understanding Your Car Insurance Policies
The insurance policy, also called the insurance agreement, is a legal contract between you and the insurance company, that determines the financial claims that the insurance company is legally obligated to pay. In return for an upfront fee, called the initial premium, the insurance company promises to cover potential loss resulting from perils listed in the insurance policy language. If you were to file a claim against your policy, you would be entitled to payment from the insurance company based on the extent of the loss. In most states, an insurance policy has to be filed with the state insurance department within 90 days of the date of your purchase.
Most motor insurance policies cover three broad categories: liability cover, collision cover, and damage cover. Liability coverage covers medical payments and losses suffered by a policy holder resulting from an accident with a third party. Collision cover provides for repairs to your vehicle after an accident, while damage cover is designed to repair or replace your vehicle if it becomes damaged or needs to be replaced due to fire, flood, or theft. In addition to these three broad categories, most policies also have a “limited usage” clause which provides coverage in the event your vehicle is used, without your permission, for purposes that are not permitted by the insurance policy.
Certain natural calamities, such as earthquakes and tornadoes, may also provide coverage for damage or loss to a policyholder’s vehicle. Because these natural disasters can cause damage to automobiles and homes alike, many insurance plans offer coverage for earthquake and tornado damage. Additionally, damage caused by fire can often be recovered from the insurance company through damage cover. Many insurance plans, including collision and comprehensive, have a “full and total” policy, which provide coverage for damage to all vehicles, and a percentage of policyholders’ medical expenses pertaining to this damage.
It’s important to understand how the insurance policy limits work. If you own a car, your insurance policy can specify the maximum amount of your auto coverage. The maximum amount of your coverage will vary depending on your policy, your vehicle, and your age. Each state is allowed to set its own limits, which may not be different than the national maximums. Some states allow the insured to choose the maximum amount of liability coverage, while others require the vehicle to be covered to the national maximum. Some states have a cap on the premium amount, while others have a tiered system of premium levels. You can get more information about Bakery Insurance
Some car insurance plans also include financial assistance for the policyholder should they need to make use of it. If you are young, healthy, and not delinquent on your other insurance premiums, you should have no problem qualifying for this type of financial assistance. While the benefits will probably be limited to items such as emergency room visits, illness, and rental cars, you should have no problem obtaining this assistance if you are in need. You can apply for these benefits online through your insurance provider, or you can contact the Department of Transportation to apply directly. To make sure you are eligible, you should contact your insurance provider immediately if you become ill or have an accident that costs your company more than your policy allows for. While your premiums are more likely to cover these expenses than you will have to pay out-of-pocket, your financial assistance might make it easier for you to get the care you need if you are hurt.
If you are injured and hospitalized, but do not need to be put under observation, you will be able to use your insurance policy to repay your hospital bills. If your insurance policy does not cover a part of your bills, your insurer will pay the remainder, up to the amount specified on your policy. You should call your insurer before you are placed in a coma so you can learn how much your policy covers. If you become paralyzed or die in a car accident caused by another driver, your beneficiaries will be able to pay your medical bills without assistance from you.