#general auto insurance
General car insurance
General car insurance is also known as liability insurance, because it refers to the property and causality portion of the policy. The property and casualty end of car insurance pertains only to the property of everyone but the insured when the insured causes a vehicle accident. This is the most basic form of auto coverage, and required to be carried by law in most US states.
People often confuse this coverage and comprehensive coverage. With comprehensive coverage, the property, usually meaning the vehicle, of the insured is also covered in the event of an accident that the insured caused to happen. Liability insurance does not cover the insured s vehicle, but in some states, will cover his or her medical bills if he or she is injured in the wreck. The policy also covers the repairs or replacement of vehicles belonging to other drivers in the accident. There are limits, however, to how much money the policy will pay out for each injured person, each vehicle or each accident. This cap is called a policy limit and all general car insurance lists the policy medical limits within in the policy at the time of purchase. For example, if the policy limits state $20,000/$80,000 it means that for each person injured in the wreck, the insurance company will pay medical bills up to $20,000. All medical bills from the accident combined cannot exceed $80,000 or the insurance company stops paying at that point and the policyholder may be held responsible for the balance.
The same formula applies to the property coverage part of a general car insurance policy. If the policy states, $15,000/$60,000, it means that the insurance company will pay out up to $15,000 for each vehicle damaged in the wreck. If there are several vehicles involved, the insurance company will out $15,000 per vehicle up to four vehicles, because that will reach the $60,000 cap. Again, if damages exceed these amounts the insured can be held liable for the balance. The policy does not cover damages to the insured s car, unless the coverage includes under-insured or uninsured motorists. This means if the insured does not cause the accident, but the driver who did is either not insured or carries less coverage than the insured s damages amount to, the insured s policy will pay for the repairs, or replacement up to its policy limits.
Because of the policy limits on its plans, it is important that policyholders make sure they purchase enough coverage to protect them from personal liability in the event of an accident they cause. This can be done by adjusting the limits in each area of the policy. The more expensive the vehicles are that get damaged in the wreck, the more expensive the repair bills will likely be. Causing a minor fender bender against an old, beat-up vehicle does not require the same policy limits that hitting a brand new vehicle will require. Consumers should buy a policy that provides the highest amount of coverage they can afford.