1、中文 3175 字 Auto insurance Auto insurance is a contract that protects your financial security in case of an accident. Although it is not mandated by federal law, the purchase of auto insurance is usually a requirement in most states； every state has minimum insurance laws. If said owner cannot produce
2、 proof of satisfactory assets, the he must buy an auto insurance policy. Regardless of the law, having good auto insurance is practical for the driver who wishes to avoid lawsuits or immense repair bills. According to the Insurance Information Institute, a basic auto insurance policy is comprised of
3、 six basic types of coverage. While some of these types of coverage are required by state law, some are considered optional. These are: 1. Bodily injury liability 2. Property damage liability 3. Medical payments or Personal Injury Protection 4. Collision 5. Comprehensive 6. Uninsured/Underinsured mo
4、torists coverage Liability insurance Liability coverage limits (thats for the damage you do to others) are usually presented as a series of three numbers. For example, your agent might say that your policy carries liability limits of 20/40/10. That stands for $20,000 in bodily injury coverage per pe
5、rson, $40,000 in bodily injury coverage per accident, and #10,000 in property-damage coverage per accident. Liability insurance (both bodily injury and property damage) is the foundation of most auto insurance policies. Every state that requires auto insurance mandates the purchase of property damag
6、e liability, and Florida is the only that requires auto insurance but does not call for bodily injury liability. If you are at fault in an auto accident, your liability coverage will pay all the expenses, bodily injury, property damage, and any legal bills. The bodily injury coverage would pay for m
7、edical bills and lostwages； the property damage coverage would pay for any auto repairs, or replacement. Property damage liability usually repairs damage to other vehicles, but can also cover damages to things such as lamp plus, fences, buildings, or anything sew that your car ma have struck. The ot
8、her party also decide to sue you to collect” pain and suffering” damages. See the Minimum levels of required auto liability insurance to find out whats required where you live. Remember, if you cause a serious accident, minimum insurance may not cover you adequately. Thats why its a good idea to buy
9、 more than what your state requires. If you own a home and have nest egg and a savings account, you should consider more liability insurance because, in most states, drivers are allowed to sue other drives who injure them in car accidents. If youre sued and your liability insurance doesnt pay for al
10、l of the damages, your personal finances are on the hook, and its likely youll become a target. Collision and comprehensive coverages If you cause and accident, collision coverage will pay to repair your vehicle. You usually cant collect any more than the actual cash value of your car, which is not
11、the same as the cars replacement cost. Collision coverage is normally the most expensive component of auto insurance. By choosing a higher deductible, say $500or $1, 000, you can keep your premium costs down. However, keep in mind that you most pay the amount of deductible before the insurance compa
12、ny kicks in any money after an accident. Replacement cost is the amount it would take to replace your vehicle or repair damages with materials of similar kind and quality, without deducting for depreciating. Depreciation is the decrease in vehicle value because of age or wear and tear. Actual cash v
13、alue (ACV) is the value of your property when it is damaged or destroyed. Claims adjusters usually figure ACV by taking the replacement cost and subtracting depreciation. Insurance companies often will “total” your car if the repair costs exceed a certain percentage of the cars worth. The critical d
14、amage point varies from company to company, from 55percent to 90 percent. Comprehensive coverage will pay for damages to your car that werent caused by an auto accident: Damages form theft, fire, vandalism, natural disasters, or hitting a deer all qualify. Comprehensive coverage also comes with a de
15、ductible and your insurer will only pay as much as the car was worth when it got wrecked. Because insurance companies normal will not pay you more than your coos book value, its helpful if you have a rough idea of this amount .If your car isworth less than what youre paying for the coverage, youre b
16、etter off not having it. Neither collision nor comprehension insurance is required by any of the states, but some lenders, when the owner finances the car, nay require the purchase of collision and comprehensive in the loan agreement. Even when t is not required, collision and comprehensive coverage
17、 is highly recommended by the insurance industry, so that in the unforeseen event of damage or theft, the owner of the car can avoid heavy bills. Theft of cars is not as unusual as some people may think . Medical payments, PIP, and no-fault coverages Medicalpayments (Med pay) coverage will pay for y
18、our and your passengers medical expenses after an accident. These expenses can arise form accidents while youre driving your car, someone elses car (with their permission), and injuries you or your family members incur when youre pedestrians. The coverage will pay regardless of who is a fault, but i
19、f someone else is liable, your insurer may seek to recoup the expenses from him or her. Personal Injury Protection (PIP) coverage is an extended form of MedPay. Pip may cover expenses that are reacted to injury, but not necessarily medical, such as lost wages, childcare and funeralcosts. PIP coverag
20、e is currently required by sixteen states. If you are already insured under a good health insurance policy, then fortunately, there is no need to buy more than the minimum required amount of PIP or Med Pay insurance. Uninsured/Underinsured motorists coverage Uninsured motorists (UM) coverage pays fo
21、r your injuries of youre stuck by a hit-and-run driver or someone who doesnt have auto insurance. It is required in many states. Underinsured motorists (UIM) coverage will pay out if the driver who hit you causes more damage than his or her liability coverage can cover. IN some states, UM or UIM cov
22、erage will also pay for property damages. Similarly, underinsured motorists insurance will cover any damage caused when you are struck by a driver who is not insured for a sufficient amount. If you are hit, as a pedestrian, underinsured coverage will cover the expenses. Add-on features Several suppl
23、emental auto coverage is available, either as separate premium items or included in augmented policies. Rental reimbursement, a common add-on, covers vehicle rentals required because your car is damaged or stolen. Coverage for towing and labor charges in case of a broad breakdown is also common. Gap
24、 coverage for your new car will pay the difference between the actual cash value you receive for the car and the amount left on your car loan if your vehicle is totaled in an accident. Basic auto insurance is required by virtually every state. Proof of insurance is required at different items throug
25、hout the life of a vehicle. You may be asked for proof of insurance at any and al of these items: at vehicle registration, at the time of an accident, and any time when driving the vehicle. It is suggested that the owner of the car keepsproof of insurance in the car at all times, instead of on his o
26、r her person, so that it can be available at all times, no matter who is driving. Any violations of state law regarding auto insurance could result in, at best, a hefty fine, and at worst, suspension of your drivers license and/or time in jail. The dire consequences of driving while uninsured are no
27、t worth the neglect of paying for insurance. The chance that an uninsured driver wills detection is slim； he is likely being caught and strictly punished. The benefitswith auto insurance Standard Benefits Standard benefits count in Lifetime guarantee on all paint and bodywork repairs, Courtesy car,
28、24-hour Claims Helpline, and Immediate authorization of repairs, Emergencyovernight accommodation, Cover for personaleffects, Cover for legal advice, medical advice and post-accident counseling. Available as Optional Extras Available as optionalextras count in Maximum No Claim Bonus for Life, Legal
29、Assistance, Travel Accident Plan and Breakdown Cover such as roadside, recovery and home call. The benefits are different with the level of coverage you choose. You can select the cover that sits your knees, form: Third Party only-third party liability protection for injury or damage insured drivers
30、 may cause to others or theirproperty Third Party Fire and Theft-fire and theft cover for your car and third party liability protection for injury or damage insured drivers may cause to others or their property Comprehensive-loss or damage cover for your car and third party liabilityprotection for injury or damage insured drivers may cause to others or their property You may add the following optional extras to any of the above covers；
