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Home › Uncategories › What Are the Different Types of Auto Insurance Policies?

What Are the Different Types of Auto Insurance Policies?

By October 27, 2018 Add Comment Edit

What is an auto insurance policy and What will an car insurance policy cover? car insurance service offers protection to the driver and passengers in the event an accident occurs. But it is up to you to choose the level of protection you will get.

What questions are you to ask your auto insurance service provider when it comes to auto insurance matters?

in this article, we would discuss on what are the different types of auto insurance policies? we would provide them in details so that when you read through the end you will have knowledge on the different types of car insurance policies.

Types of auto insurance policy

Third party or Liability insurance -

This is often the lowest form of auto insurance policy offered by auto insurance service providers. This is the basic insurance policy you can have, if you got involved in an accident, and after investigation it was proved to be your fault, the auto insurance service provider will pay all the damages to the other party of the accident.

The cover you can get from auto insurance service provider is usually set beforehand. There is a basic set maximum amount they will pay you in case you got involved in an accident.

For instance, the agent can agree on a $10000 coverage per individual for bodily injury and or $40000 coverage in bodily injury and choose $10000 in property damage sustained in the accident.
You need to confirm from your auto insurance service provider what they will cover and what the limits are. Some insurance companies might offer you a very low premium only for you to realize that your cover is minimal and unrealistic.

Collision and comprehensive insurance coverage -

In a simpler term, comprehensive insurance coverage offers you protection in case you got involved in an accident and are proven to be responsible for the collision the insurance provider will pay for the repair of the vehicle.

But it doesn't appear simple as you may think, the car insurance service provider will almost always have the akhir say on the amount to be paid out, so if it is cheaper for them to give you the market value for the car, then they will most definitely do it.

You may have the belief that your car is worth $10000.00 but the real market value of the car may be $5000.00. This is a common scenario. So if it happens that the real value of the repair of your car is more than $5000.00 then the insurance service provider will simply pay the real value of the car.
you have to make sure your auto insurance service provider is not in full control of the real market value of the car, normally an organization like the AA will always provide an impartial market value.
concerning third party insurance policy, the insurance service provider will almost attempt to limit the amount they will pay out to you, but in general terms, comprehensive insurance policy will always have a higher limit.

Recreation Vehicle -

A recreation vehicle often requires its own insurance, a Recreation vehicle insurance is quite different from the basic auto insurance. You should not assume that because your car has a comprehensive insurance, so is your recreation vehicle as well.

Other Types of auto insurance

Medical, Personal Injury protection and no fault cover -

This insurance will cover the medical expense for you and your passengers in case you got involved in a collision.

The insurance service provider under the no fault cover insurance policy will pay you regardless of who is at fault in the accident. This provides you the peace of mind for your family and friends.
Personal Injury protection is often a minimum requirement that is practiced in some states or countries, you can ask your insurance service provider what are the requirements in your state.

Underinsured /Uninsured motorists' insurance coverage -

This policy offers protection to the policyholders if the person at fault is underinsured or not insured at all. It is advisable to ask your insurance service provider what will be your charges in case you got involved in such a situation. Normally the insurance provider should not charge you some extra premiums.

Rental reimbursement, towing and labor -

This extra coverage often given with a comprehensive insurance are considered as specials by auto insurance companies.

So in case your car got damaged the insurance service provider will pay you for rental cost for only couple of day. They can also offer to pay for the towing of your vehicle but not always included in the policy. You can also inquire from your insurance company what is included in the cover.
The legal requirements.

Most countries and sometimes states will require a certain level of cover ranging from full comprehensive auto insurance to a third party auto insurance.

However, in most cases, it is normally up to you as the driver to ensure that your insurance service provider offers you the minimum required you deserve. In most cases they are not under any obligation to instruct you of the requirements.

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Flight Cheap London

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