Automobiles

Automobile insurance is a contract in which an insurance company ,in return for premium, agrees to pay for certain expenses and legal liabilities resulting from the use or ownership of automobile .
Liability automobile insurance coverage is the on insurance coverage that is required in all states, through either a fault or non fault system. Other types of automobile insurance coverage include collision or accident, comprehensive for fire ,theft, or other non -collision losses;medical expenses; uninsured/under insured motorists; and gap insurance to cover the difference between the actual cash value and loan value that is owed for a vehicle.Most litigation arising from automobile insurance is handled through arbitration and mediation.

What are the basic types of auto insurance?

The basic types of auto insurance coverage are:

• Bodily injury and liability which provides you in the event you cause a crash that injures someone.It also covers your legal defense if needed. Bodily injury and liability is made up two amount(i.e. 10,000/500,000).The first limits the amount of medical payments to a single person per incident,while the second puts a cap on the total amount paid out to all injured persons per occurrence.
• Property damage liability,which covers any property damages to third party such as another person's car you damage which you cause or are responsible for.
• Medical payments to the other policy owner and other passenger's in the policy owner's car.
• Uninsured and under insured motorist coverage which protects you when the negligent driver has no insurance and insufficient coverage only bodily injury losses- though some states also include property damage losses.

• Physical damage covers damage your car.

1. Collision which covers losses to your car when you are involved in a collision.
2. Comprehensive which covers most no collision physical damage to your car .