An Auto Insurance policy refers to insurance purchased for road vehicles toprovide financial protection against personal injuries resulting from road accidents or against any liability that could arise therefrom. An auto insurance policy mainly consists of different types of coverages. The most common types of auto insurance policies include the following:
Auto liability cover
Auto liability insurance policy will cover for damages if you are responsible for inadvertently damaging another vehicle or property or injuring someone in an auto accident. Most insurance policies will cover you and your spouse, other licensed drivers who have the authorization to drive your insured car or vehicle. A liability cover generally covers medical expenses for those who will have sustained any injuries and offer compensation for damaged property.
Personal injury protection
This policy covers only the insured persons. When an accident occurs, medical expenses of those injured will be covered. Personal injury protection may also pay for lost earnings, rehabilitation services and funeral expenses in case of death.
Medical cover
This policy will pay for necessary and reasonable medical expenses related to an auto accident for covered persons only.
Collision
This policy covers damages if the insured vehicle collides with another vehicle, an object or the vehicle rolls over. In this cover the insured person is however required to pay a certain percentage of the total cover.
Comprehensive cover
It is the highest level of cover among all Auto Insurance policies. This policy pays for auto accidental damages caused by other factors other than collision. It provides compensation for damages caused vandalism, fire, theft and other natural disasters, unless certain natural occurrences are excluded in the cover. This policy covers for every known exposure except for tear and wear, collision and vehicle defects. This policy is more costly than the other types of covers.
Uninsured and underinsured covers
These policies protect those covered against road accidents caused by the faults of other drivers.
Additional Auto Insurance covers include; rental reimbursement, emergency road services such as towing and personal injuries cover. Insurance covers cost differently, insured persons are required to pay monthly premiums for their policies.
