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Different types of auto insurance policies, so let's get to know them


What is an auto insurance policy and what will an auto insurance policy cover? Auto insurance service provides protection for the driver and passengers in the event of an accident. But it's up to you to choose the level of protection you get.
What questions should you ask your auto insurance service provider regarding auto insurance?

in this article we will discuss what are the different types of auto insurance policies? we will provide them in detail so that when you read through to the end you will have some knowledge of the different types of auto insurance policies.

Types of auto insurance policies


Liability 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 that you can have, if you are involved in an accident, and after investigation it has been proven to be your fault, the auto insurance service provider will pay all of it. damage to the other part of the accident.
The coverage that you can get from the auto insurance service provider is usually defined in advance. There is a basic maximum amount that they will pay you in the event that you are involved in an accident.

For example, the agent may agree to coverage of $ 10,000 per person for bodily injury and or $ 40,000 for bodily injury and choose $ 10,000 for property damage suffered in the accident.

You should confirm with your auto insurance service provider what they will cover and what the limits are. Some insurance companies may offer you a very low premium just to make you realize that your coverage is minimal and unrealistic.
Collision coverage and comprehensive insurance -
Simply put, comprehensive insurance coverage gives you protection in the event that you are involved in an accident and are responsible for the collision that the insurer will pay for the repair of the vehicle.

But it doesn't sound simple as you might think, the auto insurance service provider will almost always have the final say on how much to pay, so if it's cheaper for them to give you the market value of the car, then they most certainly will.
You might think your car is worth $ 10,000.00, but its actual market value may be $ 5,000.00. This is a common scenario. So, if it happens that the actual value of your car repair is over $ 5,000.00, the insurance service provider will just pay the actual value of the car.

you need to make sure that your auto insurance service provider does not fully control the actual market value of the car, normally an organization like the AA will always provide an unbiased market value.
Regarding the third party insurance policy, the insurance service provider will almost try to limit the amount they will pay you, but generally speaking, the all risk insurance policy will always have a higher limit.
Recreational vehicle -
A recreational vehicle often requires its own insurance, recreational vehicle insurance is quite different from basic auto insurance. You don't have to assume this, because your car has comprehensive insurance, and so does your recreational vehicle.

Other types of auto insurance


Medical, Injury and No Outage Coverage -
This insurance will cover the medical costs for you and your passengers in the event of a collision.
The no-fault insurance policy insurance service provider will pay you, regardless of who was responsible for the accident. This gives you 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 the requirements are in your state.

Insurance coverage for underinsured / uninsured motorists -
This policy provides protection to insureds if the offender is underinsured or not at all insured. It is advisable to ask your insurer what your costs will be in case you are involved in such a situation. Normally, the insurer should not charge you additional premiums.

Rental reimbursement, towing and labor -
This additional coverage often given with comprehensive insurance is considered special by auto insurance companies.
So in case your car gets damaged, the insurance service provider will only pay you the rental fee for just two days. They may also offer to pay for the towing of your vehicle but not always included in the policy. You can also ask your insurance company what is included in the coverage.
Legal requirements.

Most countries and sometimes states will require some level of coverage ranging from full comprehensive auto insurance to third party auto insurance.
However, in most cases it is normally up to you, the driver, to make sure that your insurance service provider offers you the minimum requirements you deserve. In most cases, they are not required to inform you of the requirements.

What you need to know about your first auto insurance policy


Buying your first car is an important step. The independence that comes with having your own set of wheels is a great privilege. At the same time, owning a car means that you have an important choice to make: what coverage do you need in your first “on your own” auto insurance policy?
It's tempting to ask your agent for the cheapest policy. After all, you have a lot of other expenses to cover now that you own a car. However, once you fully understand what each part of your auto insurance policy covers, you can decide that cheaper isn't necessarily better. Think about it: If your car has been in an accident or you've seriously injured someone, a few extra dollars in insurance coverage per month could be money well spent.
Here are some of the common coverage to consider for your auto policy.

COVER THAT HELPS PAY FOR THE DAMAGES YOU CAUSE


There are two types of liability coverage. Both are required by law in most states.
Bodily civil liability:
If someone is injured as a result of a car accident you've caused, this coverage could help pay for your legal fees, as well as the person's medical bills and lost wages. This coverage often has two separate limits: one that applies to each person injured ($ 50,000, for example) and a second that applies to each accident (for example, $ 100,000).

Learn more about personal liability coverage.
Liability for material damage:
If you damage someone else's property, such as a fence or garage door, with your vehicle, this coverage can help protect you. Property damage coverage can help reimburse the other party for their losses, so you don't have to pay them out of pocket.
Learn more about liability coverage for property damage.

A COVER THAT HELPS YOU PROTECT YOU IF YOU ARE INJURED


Personal Injury Protection (PIP):
If you're injured in a car accident, this coverage can help pay for your health insurance deductible (if you have one) as well as medical bills that exceed your health insurance limits. This coverage can also help you pay for lost wages and “lost services,” such as picking up your children from school while you recover. In the worst case, the PIP can help you cover your funeral costs. Keep in mind that PIP is not available in all states.
Learn more about personal injury protection.
Medical payments:
Like PIP, this coverage can help you pay your medical bills related to a car accident. However, this coverage also extends to your passengers and a family member who was driving the car at the time of the accident. Plus, if you or a family member is injured in another car or as a pedestrian, this coverage can help pay for medical bills.
Learn more about medical payment coverage.

COVERAGE THAT HELPS YOU PROTECT YOU FROM UNINSURED DRIVERS


Uninsured / underinsured motorist:
This coverage can help protect you if you are hit by a driver who does not have auto insurance or whose policy limits are too low to cover all costs of the accident. This can help you pay your medical bills and, depending on your state's insurance laws, possibly any damage to your vehicle.
Learn more about coverage for uninsured / underinsured motorists.

COVER THAT HELPS PROTECT YOUR VEHICLE


Collision:
If you need to repair or replace your vehicle after a collision with another car or object, this coverage can help cover the costs.
Learn more about collision coverage.

Full:

This coverage can help you pay for damage to your car that is not related to a car accident. Examples: theft, damage caused by animals, fire or falling objects.
Learn more about full coverage.

Guaranteed asset protection (GAP):

If your vehicle is in an accident or stolen, your insurance company will generally pay you the fair market value of the car. However, if you still owe a financial institution more than the value of the car, GAP coverage can help you pay off the cost difference.

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