by Jeg Stone

Created on: September 29, 2009

When people think of insurance, Automobile insurance is usually one of the first types that come to mind. It is perhaps the most important of all the property and liability insurance lines. Think about it, almost everyone owns at least 1 car, and with a reported 6.4 million accidents in the U.S. in 2005 alone, there is a good chance you or someone you know will be involved in accident at some point in their lives. But the question is what coverage do you need? What does a good Automobile insurance policy cover? What doesn't it cover?

The problem a lot of the time with buying insurance, is that people don't always know what is available to them or exactly what there insurance policy includes outside of just fixing the problem when there is one. We are going to take a closer look at what is really included in a automobile insurance policy and what is available to you. This may very slightly by state, so this will just be a guide. Ask your local agent about a specific point if you are not sure or want to learn more about it.

PIP

PIP or Personal Injury Protection is just that, it is there to cover you, and is designed to benefit you in four ways. The PIP covers medical expenses, replacement expenses (rental car), work loss (wages lost), and death.

This doesn't mean if you get in a fender bender and break your leg you can stay home, collect your full wage from work, rent a corvette and get a in home nurse to check up on you. The coverage is helpful but it is not 100% coverage of everything you encounter. The insurance company will only cover a percentage of your salary from work and a percentage of all reasonable medical expenses. The death benefit is a set amount, and they will cover up to that monetary value.

What a lot of people don't know is that you can customize a policy top suit your needs. Any changes you make will effect you premium, that's how much you pay each month,6 months or a year. Insurance companies can only do so much but you can make request changes to certain items and make endorsements, add-ons to certain sections if needed.

PAP

PAP or Personal Auto Policy is what almost all of us have to some extent and it is geared to be a broad based policy with the family in mind. There are normally three main kinds of coverage included in this policy, they are Liability, Medical and Uninsured Motorists.

PAP will normally cover any vehicle you declare to the insurance company, as well as a newly acquired vehicle, a trailer you own and any

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