Understanding Auto Insurance Coverage for Making Auto Insurance Claim

AUTO INSURANCE Understanding Auto Insurance Coverage for Making Auto Insurance Claim

Published on October 7th, 2014 | by Joan Makai


Auto insurance is a type of investment that prevents the depletion of resources in the event of any automobile accidents or other relevant losses. This investment is bought by paying a charge referred to as premium to an auto insurance company. At the time of entering into a contract, the buyer and insurance provider both agree to the extent to which the liability of the insurance provider will be limited. In addition, they agree to the period for which such insurance will be valid.

Auto insurance coverage can include several risks such as

  • Damage to the vehicle and the content within the vehicle.
  • Medical treatment expenses of bodily-injuries to persons traveling in the vehicle, which may include rehabilitation costs and home nursing costs if needed.
  • Medical treatment expenses of bodily-injuries to other persons injured during an accident, which again may include rehabilitation costs and home nursing costs if needed.
  • Funeral expenses, if any.
  • Lawyer expenses and Towing expenses.
  • Damage to the vehicle or property with which the insured vehicle collided, and auto insurance claim for damage to the content in the other vehicle involved in the accident.
  • Losses due to vehicle being damaged during riots, floods or fire or being stolen.
  • Losses due to an accident with an uninsured motorist or underinsured motorist.
  • Cost of pain or suffering that is caused to the persons injured.
  • Loss of income of the people injured in an accident.

It is obvious that all such covers are needed to an extent. As accidents happen unexpectedly, it’s important that there’s good auto insurance within our reach. Nobody can be certain at the beginning as to who will be responsible for the accident. The limits mandated by most of the States are certainly inadequate and, therefore, auto insurance coverage should be almost double the amount that the State governments stipulate.

Even if full cover is taken, the liability of the insurance company is limited to the overall limit defined at the outset. Moreover, full cover may not be comprehensive enough. Usually, people opt for automobile insurance coverage with sub-limits as it is often cheaper to opt for such policies. It is possible to reduce the amount of cover and consequently the premium for some of those risks in such policies.

There is a procedure clearly mentioned in each auto insurance policy for auto insurance claim. It should be strictly followed. People need to call their auto insurance company before anything is tampered with so that the party responsible for the accident can be identified, and claims can be made from his or her insurance company. A duly accomplished report from the responding authorities must be issued and given to the insurance company for proper documentation in order to make a claim. Without such documentation, processing of claim might be delayed or rejected by the company.



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Joan Makai



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