Information for Personal Auto Policy Analysis - Essay Example

Unit Information for Personal Auto Policy Analysis Type of Car Location Principle place of Garaging Primary usage of car Mercedes Benz A brand new Mercedes Benz 2010 model Located in New York City Owner Maintains the car through a personal mechanic Primarily for pleasure Bus A 2005 model school bus Ohio State Garaging is done through a qualified school garage This car is used mainly for school trips and picking students to and from school. Apart from Building and Employer’s insurance, Motor insurance is also one of the small statutory insurance.

Under the Road traffic Act, it is against the law to take your car to the road without proper and up to date car insurance. Any travel involves risk. There is always the lurking peril that imminent damage may occur to your car, to third parties as well as to yourself. Consequently, motorist should be prudent when choosing the type of insurance cover that they go for. Moreover, it is possible to save some money whilst still getting a decent insurance cover (Boylan and Mark 2009). Every Insurance cover has its unique benefits that come with its adoption as well as the considerations that one should consider before taking a certain insurance cover.

Depending on the type of vehicle and the insurer’s budget, insurance companies have made available various auto insurance policies for policy holders to choose from. Liability insurance covers a policy holder in the event an accident occurs and the insured is deemed to be the cause of the accident. This means that the policy holder’s actions are the cause of the event that causes the accident. This policy covers and redeems the costs incurred in repairing of the damaged property. Dun & Bradstreet Insurance Company explains that the cover takes care of any expenses arising from injuries and the medical bills thereof.

This policy, however, comes with minimum requirements in terms of the value of liability insurance that drivers can claim. In particular, for any driver wishing to take this cover, it is better to take one that is above the minimum coverage requirement in your respective state (Boylan and Mark 2009). This is because this provides added protection in case one is found on the wrong for an accident since in that case the insured is to cater for any expenses exceeding the policy limit A policy holder can also take Medical Payments Coverage.

Under this arrangement, the premiums paid by the policy holder cover for any medical expense incurred in the event anyone is injured the insured’s car. Essentially, this policy disregards the driver who causes the accident. This means even the insured was on the wrong, the insurance company still indemnifies the insured (Boylan and Mark 2009). According to Weiss Insurance Company, it is clear that the cover is inclusive of the insured’s family members. In this regard, a family member involved in an accident as either driver or pedestrian will have their medical expenses billed on the insurance company.

This coverage’s are unique in every state, with some states covering the medical payments under the (PIP) personal injury protection. This is also referred to as no-fault insurance. Besides, potential policy may also consider taking uninsured/ underinsured motorist protection. Although this motorist has been widely advocated to be mandatory in most states, this has, however, not been the case. Important to note is that many states have relatively low requirements in the minimum requirements.

Consequently, the liability insurance is invariably insufficient to cater for additional arising expenses (Boylan and Mark 2009). This means that for an individual responsible for a particular damage, you won’t receive any payment without coverage. Conversely, if your coverage indicates to be less than the value of the damage caused, you are bound to receive less than the amount required to cover the entire expense for the damage. In these two situations, uninsured and underinsured motorist policies help with the expenses.

It is usually much cheaper for an insured individual to adopt this insurance policy, particularly considering the protection it offers. In addition to these, policy holders can also take up collision coverage that caters for repairs relating to the car. However, for worn out cars or cars whose values prove to have really depreciated considerably, eligibility for this insurance cover is limited. Similarly, for new or relatively expensive cars, collision coverage is the best cover to adopt if an insurer is seeking to be indemnified.

This is because insurance companies may opt to repay the policy holders’ car if it was totally damaged. Also considered is the case whereby we have a lien holder. In such an event, this coverage is mandatory. References Boylan, Ed, Scott Werfel, and Mark Swercheck. Automobile Insurance Made Simple. USA: Universal Publishers, 2009. Print.