What is auto insurance?

What is auto insurance?

What is auto insurance? 


Auto insurance secures you against financial misfortune on the off chance that you have an accident. It is an agreement in the middle of you and the insurance organization. You consent to pay the premium and the insurance organization consents to pay your misfortunes as characterized in your policy. Auto insurance gives property, liability and medical coverage:

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  • Property coverage pays for damage to or theft of your car.
  • Liability coverage pays for your legal obligation to others for real harm or property harm. 
  • Medical coverage pays for the expense of treating wounds, restoration and in some cases lost wages and memorial service costs. 



An auto insurance policy is comprised of six various types of coverage. Most states oblige you to purchase a few, yet not all, of these coverages. In case you're financing an auto, your bank might likewise have prerequisites. Most auto approaches are for six months to a year. Your insurance organization ought to advise you via mail when it's a great opportunity to restore the policy and to pay your premium.
 What Is Gap Insurance?

What Is Gap Insurance?

If you lease or buy a new truck or car, the vehicle starts to depreciate in value the moment it leaves the car lot. Moreover, most cars lose 20 percent of their value under a year. 

Gap Insurance

Standard auto insurance policies protect the depreciated value; which means insurance pays the current market value of the vehicle. When you finance the purchase of a new car and drop a small deposit, the amount of the loan may exceed the market value of the vehicle in its early years of ownership. Gap insurance is available to cover the “gap” between what a vehicle is worth and what you owe on it.

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It is advisable to consider buying gap insurance for your new car or truck purchase if you Made less than a 20 percent down payment.
    Financed for 60 months or longer.
    Leased the vehicle.
    Purchased a vehicle that depreciates faster than the average.
    Rolled over negative equity from an old car loan into the new loan.
A car dealer may offer to sell you gap insurance on your new vehicle, most car insurers offer it—and it typically costs much less. For most auto insurance policies, including gap insurance with collision and comprehensive coverage adds only about $20 a year to the annual premium.

What is Bodily Injury Liability?

In this article we  will discuss on bodily injury liability, definitions and insurance policy for bodily injury liability

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What is Bodily Injury Liability?


Bodily Injury Liability covers injuries caused to someone else either by the policyholder, or any other family member included on the policy.
Bodily Injury Liability applies whether the injury is caused when you are driving your own vehicle, or you’re driving someone else’s vehicle with their permission.

Why Bodily Injury Liability

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Bodily Injury Liability an important of coverage to include in an auto policy, how?, why?, this is because in the event of a serious accident, the other party may sue you for damages. Many states have minimum requirement laws for this coverage, but you may want to consider increasing the amount of coverage in your policy to protect your assets in case of litigation.