Motor insurance is among most crucial policy coverages for automobiles. However, this form of policy will vary from state to state in a country itself plus the comparison to its cover and protection may alteration of percentages and ratios. A car insurance policy provides protection to vehicle owners much more accidents involving cars covered by these policies along with extend protection for damages caused to third parties.
Broadly, car insurance policies cover six riskly categories, the premium payouts are based on the pricing for every single of such separately.
� Accident or collision cover
� Bodily injury liability
� Property damage liability
� Uninsured motorists’ coverage
Accident cover or collision cover – provides accident and injury coverage for policy holder if he sustains injury while travelling within an insured vehicle, as well as damages on the insured vehicle.
Bodily injury liability or third party legal liability – a motorist might be legally forced to pay compensation if his car causes difficulties for a third person or ends up with the death of the third person. Most auto insurance policies provide cover against legal liabilities which can be brought on by accidental damages to third person and property. The protection limit for injuries or death isn’t fixed and is dependent upon a case-to-case basis.
Comprehensive – some plans cite this as ‘Vehicle Damage’ which includes natural calamities. Comprehensive generally excludes accidents but includes theft, and destruction of car from natural calamities for instance earthquake, explosion, fire, flood, hurricane, landslide, lightning, falling objects etc.
Medical – often known as Personal Injury Protection (PIP), this covers hospital treatment of injuries to your occupants from the insurance holder’s car during the time of any sort of accident. It can extend to include medical or hospital bills, lost income and many other clauses which can vary.
Property Damage Liability – provides cover against damage because of the policy holder to third party property. The policy for property damage is mainly defined.
Uninsured motorists’ coverage – this covers treatment costs for your insurance cover holder from injuries sustained through accident or collision with the uninsured driver or vehicle. But not all state insurance rules specify or require that drivers must have insurance to hide every one of these risks, they recommend minimum liability cover bodily or compensation for injuries protection and property damage.
Elements that are included as add-on risks based on need or request from policy owners are:
� Auto replacement
� Rental car coverage
� Towing coverage