There are several types of auto insurance coverage available. It is important that you research and shop around before you freeze on a certain type of coverage. Because you need to be aware that once you pay up the first installment on your policy, there is no going back. You cannot get a refund and back out of the policy in the middle of the year. You will have to wait for another year until you can avail of a new policy. And it is not a good habit to keep changing policies. This will only give you bad deals on your policies.
So what are the different types of policies that are available out there?
Bodily injury liability provides coverage against bodily injury claims that might arise out of an accident. It covers all injuries that are sustained in an accident. This includes injuries sustained by you, by the other party and also any other third persons involved in the accident.
Property damage liability covers any damage to property that is involved in the accident. This can include your vehicle, the other party’s vehicle and also any other third party property that is involved in the accident. This can include a wall or fence or even any other structure like a building.
Then there is medical coverage. This will provide for all medical care required by both you and the other party involved in the accident. This will basically cover for all post operative treatments that will be required after an accident. The emergency care is provided for by the bodily injury liability coverage, but this will provide for prescription medication and other long term treatment.
There is also something known uninsured or underinsured motorist coverage. Uninsured motorist coverage will cover for your damages in the case where you have met with an accident with a person who is not insured and who does not have sufficient resources to pay for your damages. Underinsured motorist coverage is something that will cover for your damages when you meet with an accident along with a person who has very less insurance. If his or her insurance coverage is not sufficient to pay for all your damages and or injuries, you will need to access your insurance coverage in order to pay for them.
Another type of auto insurance coverage is Physical damage will pay for damage accrued by your car. This could include all external damage to your car like body and chassis damage.
Then there is collision coverage. This will cover you for all losses sustained during a collision. This is very much necessary if you are a frequent user of the freeway system. If your car is a high performance sports car or if it is an old classic vehicle, it becomes important to have this sort of auto insurance coverage.
There is also a comprehensive coverage. This will cover you against all expenses due to losses incurred due to anything else other than a collision. This could include losses due to theft or acts of vandalism. It also includes losses due to damage incurred during floods, tornadoes, earthquakes, fires or any other acts of god. It is very important to have comprehensive coverage if you stay in an area that is prone to natural disasters. It is also important to have such coverage if you are going to park your car in rough neighborhoods for extended periods of time.