You know that you need car insurance but what exactly does your car insurance cover and what really happens if you get into an accident if you’ve got questions i’ve got answers consider this car insurance one are what hi there i’m i’m into mush row and an auto insurance dot com we can give you the lowdown on how car insurance actually works ready to get started first up how does car insurance work you pay and insurance premium and an exchange your car insurance company protects you from financially if you file a claim like for an accident or a theft your policy outlines the limits of your protection for example your insurance provider might cover property damage in the event of an accident with a limit of fifty thousand dollars per accident
But if you lack comprehensive coverage and your car stolen that won’t be covered and you’ll have to purchase another car out of pocket that’s why that type of coverage matters and if you don’t have full coverage losses like you and your passengers medical expenses and property damage will not be covered in an app for accident what is auto insurance cover states have different minimum requirements for auto insurance you might add coverages beyond the minimum depending on your budget and desired level of protection the following types of coverage are common liability
If you’re at fault in an accident liability coverage pays for the damage to other vehicles and objects injuries to other drivers and passengers and lawsuits if another party soon as you collision i’m like liability coverage collision coverage protects your vehicle and the event of an accident this coverage kicks in if your vehicle collides with another vehicle or with a stationary object or if your vehicle overturns comprehensive comprehensive coverage pretax you if your car sustained damage due to events other than collisions this includes theft vandalism falling trees and flooding medical payments personal injury protection also known as p ip both cover medical bills for you
You and your passengers in a car accident medical payments coverage also known as med pay is only available in at fault states most states are at fault states which means when an accident occurs one party is usually considered at fault and they’re responsible for covering the injuries of the other driver and their pass injures p i pee on the other hand is available only in no fault states in these states each drivers individual p i p covers their medical bills instead of be at fault driver’s insurance p ip also covers other documented losses such as lost wages and childcare costs
Uninsured or underinsured motorist coverage if an uninsured or underinsured driver meeting someone who doesn’t have enough insurance coverage to pay your expenses hits your vehicle this covers your injuries to you and your pastors as well as damage to your vehicle other option or coverages you can customize your policy to your needs by adding additional coverage is like gap insurance new car replacement rental car reimbursement man more what does it auto insurance cover auto insurance doesn’t cover wear and tear to your vehicle so make sure you’re keeping up with regular maintenance like oil changes your policy is considered personal and shores and in doesn’t cover driving for commercial purposes like food delivery however
Or a commercial policy would cover you there also your auto insurance won’t cover ride sharing but you can add a ride share coverage to your policy how do car insurance payouts work before your policy kicks in and your insurance company pays you for damages or bills you’ll often have to pay a deductible for example let’s say you have a five hundred dollar deductible for your comprehensive coverage if a tree falls on your car and causes two thousand five hundred dollars and damage you will pay five hundred dollars and your insurance company will pay the remaining two thousand dollars however if your vehicle is totaled meaning it sustains damages beyond repair or if the repairs costs more than the value of the vehicle your insurance company will pay you the value of
The vehicle at that time of the was to determine if a car should be taught own insurance companies use what’s known as a total loss threshold this is where the amount it would cost to fix the vehicle reaches a specific percentage of the cars actual value once it reaches this point the insurance co company is required to declare the car a total loss each state sets that percentage or uses a total loss formula so for example if your car is valued at twenty thousand dollars your states total loss threshold is seventy five percent fifteen thousand dollars in this case and the repairs
To fix your car is eighteen thousand dollars your car has the past the total loss threshold and will be declared a total loss instead of being repaired if you have a new car replacement coverage it would buy you a new car of the same value of the original purchase and if you have gap insurance the insurance will pay for the rest of the amount you owed on your lease or love how car insurance works if you get into an accident getting into an accident is stressful and it’s hard to think clearly when it happens so that’s why it’s so important you know how your car shorts works if you get into an accident
At the scene take down as much information as you can this includes taking photos of your vehicle and other vehicles noting the date time and weather conditions recording the make model color and year of all vehicles involved exchanging contact driver’s license and insurance information with the other parties calling the police and informing them of any injuries if no one is injured and the police are not dispatched file an accident report over the phone because you’re going need this as part of the evidence for your claim
Call your insurance provider as soon as possible to file a claim you’ll need to give them all of the information that you gathered from the accident your insurance company will assign and adjuster to your claim the adjuster will be your main contact person throughout the whole process they’ll look at medical bills and zam and damage to the car investigate other losses and determine fault your insurance company will also work on your behalf with the insurance companies have any one else involved in the accident
Some adjusters will also provide initial repair estimates and other cases you’ll have to get the estimate from the repair shop yourself estimates determine how much the insurance company will pay you for damages if the insurance company improves your claim it will send a payout to either you or the repair shop to cover the vehicle repairs so you can get your vehicle fixed and get back on the road how does car insurance work when a friend or a partner uses the car this really depends on your policy in general occasionally lending your car to a friend it’s not a problem this is considered permissive use keep in mind that the car isn’t short not the driver
So even if your friend has their own policy if they have an accident while driving your car and are determined to be at fault your insurance will typically be be primary payer and in your premium may increase as long as your friend is it listed as and excluded driver on your policy the coverage will work the same way your friends policy may kick in with extra coverages that your policy does it include but again it depends on their policy if you live with your partner some insurance companies require that you add them to your auto insurance policy
If you don’t and your partner gets into an accident in your vehicle your provider need to the claim congratulations you’ve passed car insurance one no one even though car insurance can seem complicated you’ve mastered the basics if you want to learn more about how car insurance words hundred auto insurance dot com it’s linked in the description and you’ll find lots of information about auto insurance and the different types of coverage also be sure to like and subscribe to our channel we applaud imposed new videos every week
