Car Insurance Research Paper
This coverage pays for damage to your vehicle caused by other cars.Collision insurance is always optional and may only be required by a lender on more expensive vehicles.As most states have comparable negligence laws, even if you are an incredibly cautious driver, a portion of the blame will be yours.According to the Centers for Disease Control and Prevention, the cost of injuries (medical and loss of productivity) from car accidents was billion in 2010.In this case your uninsured motorist coverage steps in and covers your damages.This is an important gap in coverage because the Insurance Research Council found that roughly one out of every seven drivers doesn’t have car insurance.
In most accidents, both drivers are considered to be partially at fault because of a rule known as “comparative negligence.” There are a few situations when you won’t be considered at fault, such as if you were hit directly from behind, but otherwise you will be considered at least partly responsible.The benefit of collision insurance is that it pays for damage to your vehicle even when the accident was your fault.Collision coverage will only pay for the damage not covered by another driver’s policy when the accident is their fault. The best way to describe comprehensive coverage is as “everything else” insurance.In 2010 buyer trends indicated that 76% of drivers purchasing liability coverage purchased comprehensive.In fact, many lenders require you have comprehensive for any vehicle that has a lien against it in order to pay off the note in the event the car is stolen.According to the research firm Mitchell International Inc., the average deductible for comprehensive coverage is 6.40.Uninsured motorist protects you in the event of an accident where the driver of the other vehicle does not have insurance.While most Americans understand that car insurance is important, most people are shaky on how their insurance actually works. The phrase auto insurance is a general term that refers to various types of insurance protection for cars.The Insurance Information Institute explains that an auto insurance policy can include up to six different types of coverage: The simplest explanation of auto insurance is that it agrees to pay all or part of the costs associated with an accident, theft or other cause of damage to your car.Collision insurance is generally more expensive than liability insurance and often includes a deductible (an amount you pay out of pocket before insurance kicks in).According to the research firm Mitchell International Inc., the average deductible for collision insurance is 0.25.