The following types of car insurance coverage have existed in many countries. They includes
–Collision Car insurance coverage
–Comprehensive Car insurance Coverage
–Liability Car insurance Coverage
–Medical Car insurance Coverage
–Rental Car insurance Coverage
–Under insured Motorist insurance Coverage
–PIP- Personal injury Protection Coverage.
As a person who wants to insure his or her car, you do not need all the above car insurance coverage to be on road. Each country, State, County or regions always have a minimum vehicle insurance coverage you have to take. Therefore, check what your local law stipulates on this which can be found from your car insurance agencies or brokers or even your state insurance company. Let explain each of them;
Collision Coverage: This coverage caters for your car or truck when involved in an accident. The accident may be with another car, objects and other things stipulated in each company’s policy. This type of auto insurance coverage provides for repair cost to fix your car back andat times provide full cost of replacing your vehicle when it is damaged beyond repair. If you need a loan to finance your car, most car financing institution may need this type of coverage.
Comprehensive Car insurance Coverage: Some people call it full car insurance coverage which if you examine critically may not be completely full coverage by itself. Let leave it for your individual broker to explain for you according to what you need from insurance company. This coverage caters causes ranging from fire, flood, theft, weather and animal impact on your vehicle. Many people choose this type of coverage due to various reasons like high theft rate in there location, harsh weather condition etc, depending on what is bothering you when you buy your vehicles which is not associated with collision with other cars.
Liability Car insurance Coverage: This coverage normally settles assets/ property damages done to others and accidental body injury that may includes pain you suffered, medical expenses and at times pain associated with body accident like lost of wages or salaries, court/ defence cost. Many states or counties determine the minimum liability coverage one can have. Also depending on your needs, you can get more liability coverage if you need.
Medical Car insurance Coverage: This is an individual insurance coverage which normally settles expenses irrespective of faults as the expenses are basically cause by car accident. Some car manufacturing company offers this type of car insurance coverage to encourage people to buy a certain brand or model of car. If you need this type of auto insurance coverage and you come across it when you are about to buy your car, it worth taking as there are advantages associated with it.
Rental insurance or Reimbursement Coverage: This coverage takes care of rental trucks or cars when or if it is involved in accident. Car renting companies often use this type ofinsurance as it often have short term allowance which most often are on daily basis.
Under insured motorist Coverage: This normally settles damages when someone with no sufficient liability coverage or none, damages your car or truck. When this occurs, your car insurance company will pay your medical bills and at times some related bills while they go after the other party that caused the accident to recover claims. Some county or states at times merge under insured motorist coverage and uninsured motorist coverage. You should talk to your car insurance agency or broker for advice on the one available to you as well as other related advice.
PIP, (Personal injury Protection Coverage): This basically settles medical bills and expenses for an insured driver without looking at the fault of car accident. Some bus drivers like taking this type of coverage.
In addition, there are other types of coverage like towing coverage where by insurance company pays for towing cost associated with accident, lost of use etc. l advice you to talk to your car insurance broker to help design a proper policy for you . I do hope this article will help you make decision when choosing the type of vehicle coverage you need for your car.