Your car accident insurance coverage's are the promises your vehicle insurance firm makes to you in exchange of a premium (a payment).

This premium is what ensures coverage for you, the plan holder and the insured, in case of an auto insurance claim.

Remember car insurance is a business, and a very profitable one. If you really think about it, car accident insurance is another form of gambling, just backwards.

When you gamble, you are betting that something good will happen (you will get that lucky number) in order to get a pay out.

With vehicle insurance it is just the opposite, you are betting that something bad will happen (a vehicle accident) in order to get a payout.

My point: car accident insurance companys have the odds against you, and just like casinos they are turning record profits.

vehicle insurance groups often increase those profits by paying less than they have to.

They do this by reducing cost in different areas of the auto claim.

It is not unusual to see an insurance group trying to nickel and dime you (or your body shop, chiropractor, medical doctor, tow truck driver, rental car provider, etc.) on what is rightfully yours.

Therefore, you need to know your coverage's and insurance terms, and what exactly they mean. These pages will explain the auto insurance coverage's, terms, and definitions in simple terms.

It is important to note that the objective of all vehicle insurance coverage's is to indemnify the wronged party. Indemnification means “to put the person back in the position they would be if the chance event never happened.” Basically, they have to make you whole again.

Achieving true indemnification is very difficult and sometimes impossible. No one can make the car crash disappear or make a bodily injury go away.

The automobile insurance company will try to put the injured victim as close as possible to that position they were before the chance event by making monetary payments.

Most automobile insurance coverage's are targeted or designed to do that. To put the wronged party back on the position they were before the car crash.

car insurance organizations use this concept against you. In other words, they will use it to tell you "the purpose of auto insurance is put you back to the same point you were before the chance event, not to make you better off.”

They will argue that because of this concept, they can depreciate your damages. They will tell you that your automobile did not have “new parts.”

You had a used auto and therefore they will put you “back on the same position” you were. A used car had used parts.

State legislators have made law to carry certain car accident insurance coverage's; however, you are only required to carry liability car accident insurance.

When there is an auto insurance claim against you, your automobile insurance organization covers that person (the claimant).

Some states also require Personal Injury Protection and Medical Payments coverage. However, remember that these coverage's are the bare minimum coverage's. Every other coverage is optional.