Consumer’s Guide to Auto Insurance For Accident PDF Manual
Why Should You Buy Auto Insurance? If you cause an auto accident, you may be responsible for the losses of the other people involved. A claim may be made or a lawsuit filed against you for those losses. You may have to pay not only for the property damage you cause, but also for the medical expenses, lost wages, and pain and suffering of any injured person. The amount of money you may have to pay could be substantial.
If you don’t have insurance, anything of value that you own, including your home, savings, future wages, and other assets, may be taken to pay for those losses. Auto liability insurance can help protect you so that this doesn’t happen. Liability insurance also pays for an attorney to defend you against any claim or lawsuit that may be payable under the policy. You can also buy insurance to cover damages to your auto. This optional coverage will help pay for your losses whether or not you were at fault. Insurance is based on the theory that only a small portion of all drivers will be involved in accidents. The premiums paid by all drivers during the year are used to pay for the losses of those drivers who have accidents. When you buy insurance, you receive financial protection in case you become involved in an accident. You also make sure that a person injured through your fault will recover for losses you cause.
If you decide to satisfy the requirements of the Wisconsin Financial Responsibility Law by buying auto insurance, your policy must contain three major parts—liability insurance for bodily injury, liability insurance for property damage, and uninsured motorist coverage. When referring to liability limits, the insurance industry uses an abbreviation that can be confusing. The designation of $25,000/$50,000/$10,000 (or 25/50/10) or similar
designations refer to the maximum amounts that an insurer will pay for the three basic liability coverages. The first number ($25,000) refers to the limit on bodily injury payments coverage per person. The second number ($50,000) refers to the limit on bodily injury coverage per accident where two or more people have been injured.
The third number ($10,000) refers to the limit on property damage coverage per accident. Bodily Injury Liability Coverage This coverage does not protect you or your car directly. If you cause an accident injuring other people, it protects you against their claims up to the stated amounts for medical expenses, lost wages, pain and suffering, and other losses. It will also usually pay if the accident was caused by a member of your family living with you or a person using your auto with your consent.
Download Consumer’s Guide to Auto Insurance For Accident PDF Manual
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