Auto insurance is a general insurance for automobiles, trucks, motorcycles, and any other road-going vehicles. Its main function is to provide monetary protection against bodily injury or physical damage resulting from road accidents and from liability which can also arise out of car-related incidents in a car. There are different types of auto insurance such as collision insurance, comprehensive insurance, liability insurance, and medical payments insurance, etc.
An individual who has obtained an insurance policy but has not yet required it can opt for the optional coverage called uninsured motorist coverage. This is an important insurance policy because it offers protection in the event the insured driver is at fault in a car accident. In case the driver is uninsured, the policy will not cover any financial losses incurred by the injured party due to an accident. This means that the injured party will have to pay all expenses out of his own pocket to get the injured person treated and to fix the vehicle or vehicles. The uninsured motorist coverage can help people like taxi drivers and bus drivers who have no money to fix their vehicles if they are hit-and-run by someone who is driving without insurance.
Collision coverage, on the other hand, is another type of auto insurance coverage that can cover both bodily injuries and damages to property resulting from a vehicular accident. Collision policies are usually available with low premiums since they are designed to save drivers from paying high payments in the event they are at fault in an accident. The minimum amount of coverage needed for this type of auto insurance is PIP. This stands for personal injury protection. PIP insures the driver for bodily injuries or damages caused to a person or property by an automobile accident occurring in Wisconsin.
Another important type of coverage provided by car insurance in Wisconsin is Third Party Only. It is the minimum type of coverage that the state requires drivers to carry. Without it, drivers will have to shoulder the costs associated with repairs to their vehicle or injuries to a third party that are caused in a car accident in Wisconsin. The cost of Third Party Only coverage varies depending on the policy and the type of car insurance coverage that is purchased.
Some drivers, especially in regions with a high fatality rate, may opt for the No-fault system when it comes to calculating the amount of coverage that needs to be purchased. Under this system, the insurer is not required to pay all of the medical and funeral expenses incurred as a result of a car accident in Wisconsin. Drivers will still have to shoulder the costs associated with damage to their vehicle and personal injuries. However, the driver will be responsible for the deductible and out-of-pocket expenses. In some cases, the No-fault system can cause drivers to pay more than the minimum coverage, which may actually cause them more financial harm in the long run.
Collision and comprehensive coverage to protect the insured’s car and the third parties involved in the accident. With Collision, the insured is protected from losses resulting from a vehicular accident even if the insured is at fault. Comprehensive coverage protects the insured for losses resulting from fire, theft, vandalism, malicious mischief, public or private violence, or acts of nature. The only thing that is excluded under the comprehensive category is if the event was caused by the insured’s gross negligence or willful misconduct.
