Auto Insurance policies can be divided into different categories
according to the coverage they provide. Broadly speaking there
are four kinds of policies known as Collision Insurance,
Comprehensive Coverage Insurance, Uninsured and underinsured
Motorist Coverage policies and No Fault Automobile Insurance
policy. Besides these, there are policies that take care of
other needs like covering an auto loan, paying for towing
expenses or paying for the cost of a rented car while your
vehicle is being repaired. The most common insurance policies
are: Collision: Any property damage caused to your vehicle due
to an accident caused by any other vehicle or object is covered
under this policy. The claim amount cannot exceed the actual
cash value of the vehicle and is subject to any deductible.
Comprehensive: Any property damage to your vehicle that is
caused by non-collision factors like fire, theft, vandalism, and
even natural disasters like flood, hurricane or earthquake is
covered under this policy.
Uninsured Motorist Coverage (UM) and underinsured motorist (UIM)
coverage: takes cares of any injury that may result to you or to
persons insured in your policy from an accident that takes place
with another uninsured or underinsured driver or vehicle owner.
Generally only body injuries are covered under this policy.
No Fault Auto Insurance Policy: Irrespective of who caused the
accident, the insurance company pays for the medical expenses
and for the loss of wages that the insured suffers on account of
a collision under this policy.
Some other additional coverage that an auto insurance policy
holder can buy are:
Property Damage Liability and Bodily Injury Liability: These two
policies protect the insured from any claims made against him
for causing damage to property including vehicle belonging to
another person or for causing any bodily injury or loss of life
to other individuals up to the amount mentioned in the policy.
Auto Lease Protection: is an additional protection that you may
add to your collision or comprehensive auto insurance policy to
take care of any gap that exists between your auto loan amount
and the cash value of your vehicle.
Full Tort and Limited Tort: available only in the state of
Pennsylvania allows the insured to retain unrestricted rights to
bring a lawsuit against a negligent party or recover expenses
incurred for certain damages.
Rental Expense: Known as Extended Transportation Expense
Coverage, the policy pays for a rental car while your vehicle is
being repaired or replaced.
Medical Payments Insurance covers medical expenses for injuries
sustained in an accident involving any vehicle for the insured,
his passengers and other parties irrespective of whose fault it
is.
Towing and Labor: An additional coverage option that can pay for
all necessary towing and labor costs to tow your damaged vehicle
to a work shop or another location.
About the author:
Marcus Dubois is a veteran in the insurance industry, and
recommends InstaQuoter to get an
instant auto insurance
quote.
