An Outlook on Basic Types of Auto Insurance Coverage

It could be important for anyone who owns a car to have an auto insurance coverage. There are certainly different types of auto insurance that you can choose from. Commonly used types of auto insurance may often vary in terms of coverage, prices and premiums from one insurance cover to the other. By understanding specific facts related to auto insurance coverages,you may be able to distinguish which covers are important for you and your car.

Below are different basic types of auto insurance explained for you;

i.          Property Damage liability

There are auto insurance coverages that may be mandatory in most states and this is one of them. If your car causes an accident this cover may pay for the damages incurred by the other car or property.

ii.          Bodily Injury liability

Liability auto insurance may be as important as property damage liability. This cover takes care of medical payments if you have caused an accident that might have resulted into injuries or even death. This cover may also be used to cater for legal expenses that the accident may have triggered.

iii.          Uninsured Motorist Coverage

Even though most types of auto insurance covers may cater for the occasional accident or medical bills, this cover may also be very important because it could cover your medical expenses including that of the passengers in your car in the event that you get into an accident with a driver whose car does not have insurance. This cover may also extend to your car’s damage as well.

iv.           Medical payment

In this cover, medical expenses incurred by the driver and passengers will be covered in spite of whether the driver may or may have not been accountable for that accident.

v.          Collision Coverage

Subject to a deductible, this coverage will take care of the damages your vehicle will experience in a crash. This may be one of the most common types of auto insurance and it could be important to have one if at all you could be having a long on the respective vehicle.

vi.          Comprehensive Coverage

This cover is similar to collision coverage. The only difference may be that aside from the collision damage, this insurance covers thefts, vandalism, acts of nature e.t.c. It may also be required for you to take up this cover if you have a vehicle on loan.

There may be much more to policies than most car owners may understand. Before you get yourself an auto insurance, you may want to go through types of auto insurance clearly to understand which insurance fits your needs best. For more information, read this article: Kinds of Auto Insurance Coverage