The Four Types of Car Insurance
Vehicle insurance is coverage for automobiles, trucks, boats, and other motorized road vehicles. Its main function is to give financial protection against bodily damage or personal injury resulting from road accidents and from liability which may arise from accidents in a vehicle. In the United States, the law makes it mandatory for every automobile owner to have a minimum level of insurance. Some states also have provision for allowing motorists who suffered serious personal injuries in road accidents to claim for compensation from the other party through legal action. Some states also permit people injured in an accident to sue the other party through arbitration, while others do not.
- In Michigan, as part of the state’s civil procedure law, the insured car owner is required to purchase liability insurance. The amount of liability that the owner is required to purchase will vary from state to state. Liability car insurance is intended to cover any damages that occur under the policy and for which the insurer is liable. For instance, damages that occur because the motor vehicle owner was driving under the influence of alcohol could be covered under the policy. Personal injury protection, commonly known as PIP, is also a type of liability car insurance in Michigan.
- There are various types of coverage offered under insurance policies. Some of these include bodily injury and property damage caused by the insured vehicle, medical costs paid to the injured party, payment for lost wages, and in the case of a wrongful death, the payment to the heirs of the deceased. Under the terms of the policy, the insurer is also liable for damage caused by an insured vehicle if it was used for the purpose of illegally conducting business. Some states also limit the amount that insurers can pay in the event that they are sued for this sort of damage. For instance, in Michigan, if the court orders an insurance company to pay for damages caused by an insured vehicle, the insurance provider has to reimburse all past and future expenses pertaining to this matter.
- Medical expenses and personal injury protection will not always be included as part of liability insurance. In Michigan, an uninsured motorist clause will force an insurance provider to include these features. The term “uninsured motorist” refers to someone who is not insured by insurance and is operating a vehicle on Michigan roads. The law states that such drivers shall be presumed to know and be liable for the actions of this person.
- Damage due to theft is also addressed by most automobile insurance policies. It is mandatory for every person who owns a car in Michigan to get a minimum level of insurance coverage. This minimum coverage will include third party property damage. Some insurers also have provision for medical payments coverage for passengers who are injured in a car theft.
- If you are involved in a motor vehicle accident in Michigan and sustain injuries, you may be eligible for compensation based on the extent of your injuries. This depends on the insurance policy coverage in your particular state. If you have no insurance coverage at all, you can receive payments from the other driver’s insurance company. For more information, contact your insurance provider or your lawyer. They will be able to give you the information you need to file a claim with the right insurance company.
Liability is another aspect of auto insurance.
This type covers bodily injury and property damage sustained in an accident. Property damage liability is the most common type. Most states require drivers to carry this coverage. If you are in an accident and sustaining serious injuries, you should consult with a lawyer immediately to determine the liability in your state.
To protect yourself and others against losses incurred in car accidents, you need to have adequate insurance. Consult with an insurance agent today to discuss what types of insurance are available to you and the requirements you must meet. An experienced representative will be able to answer any questions or concerns you have and help you decide on the best policy for your needs. You can then apply for your insurance policy online or by phone.