Auto Insurance Versus Auto Warranty Mississippi MS
Reader’s Question:
Do I still have to buy auto insurance when my auto warranty is not going to expire any time soon? What are the advantages of having auto insurance versus having auto warranty here in Mississippi?
Mason
Jackson, MS
Well, there is a very big and essential difference between these two: auto insurance and auto warranty.
As with a lot of products, auto warranty is always given by the vehicle manufacturer to the consumer as a form of assurance that the vehicle is not defective. This is a direct agreement between the consumer and the dealer. The basic factory warranty lasts for a limited amount of time, usually around three years, or a limited amount of mileage. Basic factory warranty covers the payment for most repairs and the labor involved. You just have to be sure which coverage you have by double-checking your auto warranty.
Now, auto insurance also covers for repairs of damages for a various amount of reasons. But you cannot skip availing of auto insurance because it is mandated by law in each state for every driver to carry at least the basic liability auto insurance coverage. This is what serves as assurance to the state’s department of motor vehicles that a driver is capable of paying for damages when he or she gets into a car accident. Unfortunately, Mississippi is not exempted from this.
Also, sure, your basic factory warranty may be able to cover for some repairs for your vehicle, but what about the other damages you would have when you get into an accident? What if you are at fault and the other party needs medical attention? Who pays for the damages to the properties of other people involved? This is where auto insurance steps in. Auto warranty shall cover repairs only for your car, whereas auto insurance has wider coverage.
Now, do you clearly see the difference of auto insurance versus auto warranty?
Tags: auto insurance, auto insurance coverage, warranty
Police Reports and Auto Insurance Coverage Maryland MD
Reader’s Question:
I was recently involved in a fender-bender in Maryland where my car sustained minor damages. I haven’t filed a police report yet. Will my auto insurance company cover for the costs of repairs?
Anthony
Bethesda, MD
Maryland is one of the states that observe the no-fault act. This means that if Maryland motorists ever get involve in any car accident, then they will be covered by their own auto insurance company. This essentially means that all motorists need to carry the Personal Injury Protection (PIP) insurance in their policy to pay for medical care, funeral expenses if needed, and a month’s worth of lost wages. In addition to PIP, minimum liability has to be purchased. This safeguards the insured if he or she causes an accident and the other motorist’s coverage was used up. The insured’s liability insurance takes care of the remaining amount.
Now, in your case, filing a police report is unnecessary if the damages sustained to your car do not exceed $500, although it is always smart to report any accident to the police just in case a dispute comes up. But whether or not you filed the police report, you should still be covered by your auto insurer regardless of who was at fault in the accident.
Before calling the auto insurance company, though, it would be good to consider the severity of the damage. If you can shoulder all the cost incurred for repairs without considerable difficulty, then filing small claims should be the last thing in your mind. Car insurers keep track of inquiries for possible claims and may use this information to raise your rates in the future.
Tags: auto insurance claims, car insurance rate, liability insurance, no-fault