What is liability coverage auto insurance type?

What is liability coverage auto insurance type?

Car accidents occur more frequently than one thinks. In the year 2005 alone there have been a reported number of nearly 6,420,000 vehicular accidents in the United States.  In those crashed, an estimated number of around 2.9 million were injured during those crashes and more than 40,000 died in those accidents. Based on those numbers a calculated total of 115 people die every day in the United States because of car accidents. If you cannot fathom the severity of that, imagine one person dying every 13 minutes just by getting in a car. The cost totaling from those vehicular accidents round up to approximately 230 Billion dollars – billions of dollars were lost in car accidents and this was just in one year alone. Because of these safety hazards, the importance of saving ahead and investing in auto insurance is more than a wise choice, most states mandate that a vehicle must have at least some sort of auto insurance to ensure road and driver safety.

One of the basic a uto insurance types covered by this law is the liability coverage. This coverage covers mains the vehicular accidents and hazards. The major clause binding this type of insurance however is the "liability" clause which simply states that you have to be at fault in order for insurance to cover the damage. This is a bit practical in analysis but can sometimes be a source for loopholes in cases.

There are several types of liability coverage car insurance and these are: (1) property damage liability, (2) bodily injured liability and (3) underinsured or uninsured motorist coverage. The first type ensures the covering in terms of replacement and repair of physical properties during an accident. For example, if one car tail ended another car leading for it to spin and crash into a fence of a house.

This type of insurance not only covers the cost of the repair of the car but also the replacement and repair of the said damaged fence. During the same situation, if for example, a by standing child is injured instead of a fence, in a bodily injured liability type, the hospital expenses would be covered by the insurance. In the possible event that the car which tail ended your car is uninsured for instance during the accident, in the third type of insurance, the damages on your car may be taken on by your insurance company.

Other accident related auto insurance types other that the liability coverage also exists and come numerous in number. Some of the more common types are the collision type, which covers the expense of repair of your car in case you are liable for the accident. The comprehensive type is also popular but a bit more expensive as it covers repair of your car for reasons caused by other and even for a variety of other reasons such as floods, fires or even earthquakes and other natural phenomenon. Lastly, the medical payments or personal injury protection type ensures medical insurance coverage for those injured or killed at the accident regardless of whoever may be at fault at the time. With these various insurance types, make sure to read and know the clause of your agreed insurance so you may know what may be your options and possible concerns in case of a vehicular accident.

Are you looking for more information regarding auto insurance? Visit www.onlinecarinsuranceinfo.com today!

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