There are so many types of auto insurance these days that buying a customized package is very difficult with so many choices available. Selection of different insurance policies is the decision that the customers should make. Knowing about various insurance policies can help the automobile owners make a better decision when it comes to choosing the policy they need. Some of the important insurance policies are listed below with a description to help understand them better.
Third party Liability insurance
This is the mandatory insurance policy that everyone who drives an automobile in USA should own. Third party collision insurance covers all other drivers on the road, in the event of collision. The policy holder’s insurance company pays out the claim money to the other driver involved in the collision covering for the damages caused by the collision. This insurance covers only the other driver involved in the collision and not the policy holders themselves.
Medical liability insurance
This insurance works very similar to the liability insurance, but it pays for any physical damages resulting from an accident. The insurance company of the policy holder pays the medical bills of the other driver after the collision. Having this insurance saves the policy holder from paying huge amounts of money for the treatment of the other driver involved in the collision, if the policy holder is at fault.
Uninsured motorist coverage
This policy protects the policy holders in case the other driver involved in the collision does not have liability insurance, and is at fault. Uninsured motorist coverage pays all expenses to cover the damage even if the other driver does not have an insurance company to pay for third party liability policy. Although liability insurance is mandatory, some drivers still drive around without the mandatory coverage, which is why this policy is a good addition.
Personal injury protection
This coverage protects the policy holder by covering all the expenses resulting from treatment of injury due to collision. This policy is important to make the coverage an all round protection plan, since medical bills can be a real burden in unforeseen circumstances.
Collision insurance
This plan protects the policy holder’s automobile from damages resulting from collision of any kind. This policy covers for the damages regardless of the fault of the policy holder, which makes it a very important addition to the coverage.
Comprehensive Insurance
Comprehensive insurance policy offers a comprehensive protection of the vehicle against damages resulting from natural causes like rough weather, natural disasters, and vandalism and so on.
