There are a number of different auto insurances although there is only one that is mandatory; liability Auto Insurance in Commerce, MI. Liability insurance will compensate another person rather than the policy holder and in doing so it saves the policy holder from having to pay out his or her own money. If a person who has a liability insurance policy was to be involved in an automobile accident, the insurance will protect the policy holder’s assets and the injured party will have access to the insurance up to its insured value. The insured value is the amount of liability for which the driver of the errant automobile is insured for.
Over and above liability insurance are policies that actually provide protection for the policy owner; these policies are collision and comprehensive. If the policy owner is injured in the collision, the collision insurance will pay for medical care even if the insured was responsible for the accident. If the vehicle of the insured is damaged in any way other than a collision, comprehensive insurance will cover the repair or replacement.
Most states demand that the minimum auto insurance in Commerce, MI is liability. The minimum face value of the policy is set by the state. This insurance will cover damages inflicted on the other person’s property or person. If the car is not yet fully paid for and has a lien on it, the finance company will often demand that collision and comprehensive insurance be carried for the vehicle until the title is clean and free from lien. In this way, if the car is damaged or totaled, the finance company will not be stuck with the costs. In many cases, people maintain collision and comprehensive car insurance as long as the car has significant book value, value which is far in excess of the annual premium.
Liability insurance can be bought in various amounts; the face value of the policy will determine the premium. The drivers past history can have a detrimental impact on the premium as well. In the event the policy does not cover all the expenses, including those that may come as a result of a suit, the policyholder may be left to cover the balance.
If you need auto insurance in Commerce, MI you are invited to contact Insurance Advisors, Inc. The company has been providing protection to their clients for over 30 years with competitively priced insurance.