Understanding Insurance

Author: Mandy Malone

Auto Insurance
An auto insurance policy protects you against financial loss if you are involved in a car accident. General types of auto insurance coverage include liability coverage, property damage and first medical benefits, all of which are required by law. Uninsured and underinsured coverages pay you and the other passengers in your vehicle if a driver with no insurance or insufficient auto insurance crashes into your vehicle. Auto insurance also gives the option to add coverages that will cover damage to your own vehicle. Comprehensive coverage will cover damages to your vehicle caused by fire, theft, vandalism, deer, and cracks to your windshield. Collision coverage covers damage to your vehicle caused by an at-fault accident. Also, road service and rental reimbursement coverages are available to add to your policy at an additional cost. There are many discounts available for auto insurance, including: Safe Car Driver, Multi-Car Discount, Age 55 or Over, Passive Restraints, Anti-Theft Car Devices Discount, Auto Anti-Lock Brakes, Multi-Policy Discount, Auto Insurance Payment Plan Discount, Auto Accident Prevention Course, Driver Training, and Reduced Car Usage Discount.

Homeowners Insurance
A standard homeowners insurance policy includes four types of coverage. The first is Coverage for the Structure of your Home and Other Structures. This part of your policy pays to repair or rebuild your home for damage caused by most common risks. Typically, damage caused by fire, wind, hail, or lightning is covered under this part of the policy. The second coverage involved is Coverage for your Personal Belongings. This part of the policy coverage personal belongings that are stolen or destroyed in an insured disaster such as a fire. The third part of the policy is Coverage for Additional Living Expenses. In other words, if damage from a fire, storm or other insured peril forces you out of your home, this part of the policy covers the expenses incurred while your home is being rebuilt. Finally, the last section is a homeowners policy is Liability Protection. This covers you against claims or lawsuits for bodily injury or property damage that you or your family members negligently cause to other people or property. Your policy also provides medical coverage. In the event a friend or neighbor is injured in your home, he or she can submit the medical bills to your insurance company. At an additional price, other coverages offered include; Replacement cost, Sewer or drain water back-up, Earthquake insurance, Flood insurance, and Identity protection. If you rent instead of own, you can purchase Renters Insurance for a cheaper cost. This would cover the contents in your apartment if something were to happen to them.
Personal Catastrophe Liability – Umbrella
An umbrella, or PCL policy, is extra liability protection for the actions of covered family members, above and beyond your already established auto and homeowner's policies. It provides an additional $1 million coverage against lawsuits arising from personal injury or property damage claims. If someone is severely hurt on your property or as a result of an accident that you caused, this liability protection would kick in if you have already exhausted your normal limits.
If you live in Western Pennsylvania and would like a free, no obligation quote to see how much money Erie Insurance can save you on your home, auto, and/or commercial insurance, please contact: Jessie Balicki, J.E. Balicki & Assoc. Inc. - 724-226-1300, jebalickiassoc@verizon.net
Article Source: http://www.articlesbase.com/insurance-articles/understanding-insurance-3781539.html
About the Author

Jessie is a guest writer representing Erie Insurance.