This premium is what ensures coverage for you, the programholder and the insured, in case of an car accident insuranceclaim.

Remember insurance is a business, and a very profitable one. If you really think about it, auto 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 car insurance it is just the opposite, you are betting that something bad will happen (a car accident) in order to get a payout.

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

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

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

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

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

It is important to note that the objective of all car accident 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 accident disappear or make a bodily injury go away.

The car accident insurance firm will try to put the injured victim as close as possible to that position they were before the accident by making monetary payments.

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

insurance companys use this concept against you. In other words, they will use it to tell you "the purpose of car accident 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 auto did not have “new parts.”

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

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

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