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By: John McLynn

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ONLINE INSURANCE TERMS: AUTOMOBILE
This article is a follow up article to a previous post. In the earlier one, we discussed what is meant by the terms: Bodily Injury Laibility, Property Damage Liability, Basic Personal Injury Protection . Today we will discuss, Uninsured Motorist/Underinsured Motorist, and Comprehensive.
As we discussed, Personal Injury Protection is the amount of payments that are covered if you are injured in an accident. Different companies cover different injuries as a usual and reasonable, some are mandated by the states, but most cover medical costs, hospital costs, income continuation, lost wages and funeral costs.
Comprehensive: Covers damage to your car when your car hits, or is hit by, another vehicle, or other object. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. For older cars, consider dropping this coverage, since coverage is normally limited to the cash value of your car. Coverage is limited to the terms and conditions contained in the policy. This is not required by a state, but if you have a loan or a lease then the lien holder will require it.

Uninsured Motorist Coverage: Covers you, the insured members of your household and your passengers for bodily/personal injuries, damages, or death caused by an at-fault uninsured or hit-and-run driver. If you are involved in an accident where the other driver is at fault but has no insurance, your policy will cover your medical expenses, up to the limit on your policy.

Who is covered?

Policyholder
Other drivers covered by the policy
Passengers
How much protection does this coverage provide?

If the other driver involved in an accident is uninsured, this coverage pays up to the limit you purchase. The coverage limits refer to the maximum amount that will be paid per person, per incident, respectively.

Who might benefit from buying uninsured motorist bodily injury coverage?

Individuals without health insurance may benefit from this coverage, because if the limits chosen are inadequate, you will be responsible for paying the additional amount.
UNDERINSURED MOTORIST PROPERTY DAMAGE (UNDPD):

Covers when property damage is sustained by an insured and the negligent operator possesses insurance, but the limits of liability carried by the negligent driver are not sufficient to cover the damages.

How much protection does this coverage provide?

If you don’t have Collision coverage, Underinsured Motorist Property Damage coverage pays up to a certain amount for repairs to the insured car (some states have limits at $3500, some are lower and some are higher) If you have Collision coverage, Underinsured Motorist Property Damage coverage only pays your Collision deductible (in some states).

Does this coverage replace Collision coverage?

No. Underinsured Motorist Property Damage alone is not enough to cover all potential car repair/replacement costs, and only applies if you are involved in an accident caused by a driver without enough liability insurance coverage.

Both UMPD and UNDPD coverage can be combined or sold separately depending on the state and insurance carrier.

Online Insurance

http://www.onlineinsurance.biz

Article Source: http://depositarticles.com/

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