Basic Insurance Tutorial

Learn some of the key concepts in the insurance industry.

Tutorial

Auto Insurance, something in most states that is mandatory.

Liability: is for the other person their bodily injury their property damage. Each state has its own mandatory state limit,

Uninsured Motorist: is for you and your passengers bodily injury if someone else is at fault in an accident and carries no insurance. Uninsured Motorist will pay out up to your limits.

Underinsured Motorist: is for you and your passengers bodily injury if someone else is at fault in an accident and their coverage does not cover the extent of you or you passengers injuries then your underinsured Motorist will pay out the remaining amt up to your limits.

Comprehensive Coverage: is for your vehicle for fire, wind, theft, and glass.(ETC) You will have a deductable to be paid out before the insurance pays out on the claim. examples of deductable are 50, 100, 250, 500, 1000.

Collision Coverage: is coverage for your vehicle if you collide with another vehicle or object. Most companies pay at stated value. also has a deductable, same as above

Medical Pay:  In certain states, Medical Payments insurance is a coverage under which an insurer agrees to pay, up to a specified limit, medical, surgical, hospital, and funeral expenses, regardless of the liability of the insured.

Towing: most companies provide this for a set amount per inccdent if your car has become diabled.

Rental: Is a coverage you can obtain for additional premium and usually is a dollar amout per day up to a certain limit, that allows you to rent a vehicle if your car is in the shop getting repaired as a result of an accident.