Short Description For Basic Car Insurance Coverage Types

If you have been a driver for some time, you’re probably  aware about various car insurance coverage types.  But do you really know what it is and how does it work? This topic is vast and sometimes really complicated.  Read this car insurance explained guide, with the basic info.  We also recommend you to use our website if you want free car insurance quotes.

auto1 - images (2)Basically, auto insurance guarantees financial compensation if anything happens to your car, your passengers and yourself and it is mentioned in the contract that the company will financially aid.  Those are so called covered events and only if you are implied in a covered event you will get money. For example, you will not be reimbursed if your car is vandalized and partially wrecked and you only own liability or collision insurance, policies that do not cover vandalism.  Each policy has its advantages and drawbacks. Plus a series of terms and exceptions that should be better explained by a car insurance agent.  Still, you should learn the basic features of every major type of auto insurance policy.

  • Liability auto insurance provides reimbursement for the victims of an accident you are at fault. It is has 2 parts: bodily injury and property damage liability. This policy is the one asked by the government of every state. Liability pays only for the damage you cause, not the one you receive when you are to blame. It is mandatory to carry a minimum liability coverage in almost every state.
  • Collision auto insurance pays for the damage to your car, no matter who caused the accident. It also pays for flipping your own car
  • Comprehensive coverage offers reimbursement if your car is totaled or damaged by other factors than an accident. It also used to cover car theft.
  • Uninsured motorist. If you involved in a collision caused by an uninsured/underinsured motorist, this policy helps you pay medical and car repair bills.
  • PIP insurance provides medical coverage for you and your passengers, if you are involved in an accident.
  • Commercial car insurance is designed to cover commercial use vehicles, their cargo and their drivers

And there are many other types of coverage, depending on the vehicle you want to insure, its purpose and other special conditions. For example, you can get van coverage, RV coverage, truck coverage and so on.

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