A car should be perceived as one of the great assets one can have in his life.
So a car and insurance should be inseparably linked together.
A general car insurance policy usually provides six types of coverage including the following: Liability Coverage: Liability insurance does not cover any expenses, related to damage to your property, or any injuries.
It pays for those, suffered by the other parties in an accident for which you are found to be at fault.
Property Damage Liability: Property damage liability does not cover damage to your own property.
When you are found at fault in an accident, and your vehicle has damaged someone else's property, it pays off.
Bodily Injury Liability: If you are found at fault in an accident, which resulted in injury to another party, bodily injury liability coverage pays off for the damage.
It does not cover your own injuries, or those of any other driver included on your insurance policy.
Comprehensive Coverage: Comprehensive coverage covers almost any type of loss that may occur, but not as a result of an auto accident.
This can be the damage from severe weather such as tornadoes, hurricanes, or hail storms, or natural disasters such as earthquake, flood, or fire.
Collision Coverage: Collision coverage comes into action when your vehicle gets involved in any kind of collision, whether with another vehicle, a building, a guardrail, or any other stationary object.
Fire and Theft Coverage: Fire and Theft Coverage applies when your vehicle is damaged as a result of fire, or in case your car is stolen.
If your car catches fire due to lightning or an explosion, this coverage pays to repair or replace your vehicle.
Physical Damage Coverage: Physical damage coverage has three other types of coverage: fire and theft, comprehensive and collision.
Once your car is paid off, this coverage may become optional.
Personal Injury Protection: Personal Injury Protection is a complement to bodily injury liability coverage.
It covers approximately 80 percent of medical expenses including rehabilitation, funeral costs, and lost wages.
But where it differs from bodily injury liability is that it covers you, your passengers, or anyone authorized to drive your vehicle.
Underinsured Driver Coverage: Underinsured Driver Coverage protects you if you are involved in an accident with a driver who carries the legal minimum amount of liability insurance, but there will be no extra insurance to cover all your losses.
Uninsured Driver Coverage: Uninsured Driver Coverage pays in an accident with a driver who carries no auto insurance whatsoever; carries insurance coverage that falls below the state's required minimums or is insured by a company that is financially unable to cover your losses or hits you and flees the scene.
Apart from these, there are Gap Auto Insurance, Rental Car Insurance, and Pay-Per-Mile Coverage which you can opt for depending on your needs and preference.