Types of Car Insurance
A Insurance Article Contributed by Ajishnu Sharma
An Introduction to Car Insurance Options
Car insurance, as I mentioned in my previous article, provides a very widespread choice of offerings to a policy owner. Earlier, we had talked about basic Liability Coverage. In this article, we will deal with two of the other forms of car insurance policies available - medical payments coverage and Personal Injury Protection(PIP). However, not all these policies are followed everywhere. Governments may decide to honor some of these policies while setting aside some others.
Medical Payments Coverage - an All-Win Car Insurance Package
One of the important types of car insurance policies is the medical payments coverage. If a person opts for this insurance policy, it ensures that the insurance company takes care of the medical expenses incurred by the policy owner, and the other family members of the policy owner. That is not all. A person opting for this type of car insurance can ask the insurance company to also handle the medical expenses of any passenger in the car at the time of the accident.
This includes non-family members too. Also, this kind of insurance coverage does not take into account the fault factor; it does not matter who was at fault. If you are in an accident and are injured, and you or your family member owns this policy, you are entitled to medical reimbursement from the insurance company.
You can easily see why this is such an important policy to have. Imagine you and your family are going on a holiday, when suddenly you are hit by another car. Now if you did not have this policy, and had some other policy, your medical bills would no doubt be taken care of easily. But what about the expenses incurred by the other members of your family? That money would have to come from you, the insurance company would not pay the medical bills of your other family members.
Such a scenario could still burn a big hole in your pocket. However, if you had been covered by this kind of an insurance policy, all your family members medical bills would be taken care of by the insurance company. Now that would be such a relief, wouldn't it!
PIP and Car Insurance
PIP stands for Personal Injury Protection. This kind of car insurance cover is basically the same as medical coverage. The difference is that it provides a wider reach as far as payments are concerned.
Let us take the same scenario we discussed earlier in this article. You and your family members are involved in an accident that results in medical treatment, hospitalization, etc. If your insurance cover was the medical payments type, it would cover only the medical expenses of you and your family members. What about the other financial losses that you might incur as a result of your accident? What if you lost wages as a result of your absence from your workplace?
What if the accident resulted in you losing your job? If your insurance cover included PIP, all such eventualities would be taken care of. Therefore it is wise to choose your car insurance policies carefully, to ensure that you are benefited on all fronts.
