Auto Insurance-what
is it all about?
Auto
insurance
coverage is basically extended to auto insurance holders who enjoy
compensation
for any financial loss that may be incurred due to an auto accident.
The
insurance
coverage that is extended as per the insurance policy is varied and may
differ
from one instance to another. Some of the known conditions when an
insurance
policy comes into effect may be summarized as under-
- Personal
Injury Protection or PIP
- Collision
- Comprehensive
- Property
Damage Liability or PD
- Bodily
Injury Liability or BI
- Uninsured
Motorist Property Damage or UMPD
- Uninsured
Motorist Bodily Injury or UMBI
- Underinsured
Motorist Property Damage or UNDPD
- Underinsured
Motorist Bodily Injury or UNDUM
By AmPmInsure
Community
A glimpse into the working of the auto
insurance policy-
A
claim is filed
with the auto
insurance
company. It is basically a claim to compensate for the loss incurred
due to the
auto accident. Once the claim has been filed, the auto insurance
company starts
the process of evaluation. The evaluation process decides the extent of
damage
that has resulted due to the accident.
The
claim amount
is directly proportional to the insurance cost. More the claim for
reimbursement amount more is the insurance cost.
Filing
too many
claims impacts the resale value of the car. Therefore, it is preferable
that if
the loss incurred by the auto accident can be borne by the owner, one
should
not file a claim in the first place.
Even
though auto
insurance can be of immense help, there may be instances when auto
insurance
may pose to be a big problem. Some of the instances include-
-
If you
accidentally lay your hands on illegal insurance contract
-
You may as well
be a victim of identity theft
-
If you fall
prey to scams involving auto insurance.
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