Tuesday, 3 August 2010

Riders of auto insurance to get full compensation

Insurance is an agreement between the insurance provider and the customer for compensating a loss or damage which may occur in future by any reason. But you must be aware that you may not get the actual amount of loss or damage when miss happenings occurred. For car insurance you have to purchase riders also to get compensated fully.  Let us know some important riders when you go for car insurance.

Actual Cash value: Whenever you got a miss happenings the insurance provider settled with the actual value of the things less deductibles (The amount can be fetch for the scarp) you got damaged. But if you buy a car last year and the cost may be more now. So you could not buy a new one or get it repaired with the amount given by insurance providers. To overcome this difficulty you should go for a rider which gives the replacement cost.

Body Injury Liability: This riders covers the medical treatment cost of the person who met with accident. In some places and in some cases there may be a huge medical bill and that expenses can be covered with this rider.

Property damage liability. When you damage others property with your vehicle you can compensate with this rider.

Medical Payments. This rider protect you to cover the additional medical expenses and rehabilitation expenses for yourself and co passengers at the time of accident.

Indemnity. This rider covers the expenses to restore your previous conditions before the accident. The amount may be predetermined when you join the policy.

Income loss protection. This rider covers the amount of loss due to your accident and continuing non working time. This is also with medical payment and without medical payments.

Exclusions. Any type of accident which is not covered under your insurance policy may cover with this rider. But  you have to discuss about this before joining the policy.

Endorsement. When you want to make any additional changes in the term of policies or add any additional coverage or drivers the insurance provider should endorse the changes after approved it.

Collision coverage. when your car hit with other car you can use this coverage to get the compensation.

Rental reimbursement coverage. This will meet the rent of a vehicle you have hired when your car is met with an accident and under repair.

Towing Labor coverage. This will meet the expenses to tow your vehicle when it is break down.

Comprehension coverage. This will cover the damage due to theft, fire etc.

Uninsured motorist coverage. This will compensate you when you met with an accident with an uninsured or insufficient insured vehicle.

Gap Auto Insurance coverage. This is known as umbrella rider which protect you to meet the gap between the compensation and the existing unpaid amount in your car loan. The balance amount will be paid by the insurer.

Riders of Auto Insurance


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