Common Types and Components of Car Insurance

August 17, 2017

Common Types and Components of Car Insurance

Common Types and Components of Car Insurance - This article will explore important points regarding auto insurance and the common types of coverage offered on the marketplace with the aim to provide informations needed.

If you are an employee, your employer will most likely give you a few benefits in the form of insurance. While this may differ from one business to another, two of the most common benefits given to employees are healthcare and life insurance coverage. Many people would think these types of coverage are more than enough to protect them on the road. They may be surprise that, quite the contrary, they are not. If you ever got into a car accident, your health care plan might help you cover the cost of your medical bills; and in the event that said accident resulted in death, your life insurance policy might help your loved ones cover their living cost in this trying time. However, neither of these policies stated anything about car damages as a result of collision – whether it be damages to your property or to others.
Common Types and Components of Car Insurance
Common Types and Components of Car Insurance
The same thing can be said for health care; while it may cover your medical bills, it does not cover the other party’s in the event that you are found responsible for the collision. This is the primary reason why, as helpful as two of the aforementioned insurance policies are, they cannot replace your need of car insurance. To understand the available automobile coverage offered, see the following:

   - Liability coverage

Perhaps the most vital policy to own, liability insurance comes in two components – all of which are just as important. Property damage liability helps cover the cost of damages that is caused by the car owner to other driver’s car when they are declared responsible for the collision; whereas the Bodily Injury liability helps cover the other driver’s medical costs when the car owner is found to have caused the accident.

   - Medical payments coverage

This policy is required in some states whereas others give the choice to opt out. Unlike the Liability coverage, this component helps cover X-rays, surgery, hospital visits and any other medical related costs for anyone who is driving the insured’s car at the time of accident.

   - Personal Injury Protection

This type of policy is only available in a few states, unlike Liability coverage, this component only covers expenses incurred after serious injuries. The expenses in question are namely loss of income as a result of your injuries (or disability), or child care because your injuries leave you unable to care for them on your own.

   - Comprehensive coverage

If you are leasing, your insurer may require you to purchase comprehensive insurance in addition to the aforementioned Liability policy. This is done to ensure that the car is adequately protected both in the eve done to ensure that the car is adequately protected both in the event of collision and non-collision. Yes, this type of policy is indeed specifically designed to protect what Liability policy does not. If the damages to your property is the result of vandalism, riot, theft, and most importantly natural disasters such as hurricane and flood – you are covered.
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