What is auto insurance coverage and what are the types of auto insurance covers?


Auto insurance coverage very basically means the parts and components of a vehicle that stand to be covered under an insurance policy in case of an accident. Government policies have made it a requirement for vehicle owners to have their vehicles covered by an insurance policy for the financial protection of the vehicle. An auto insurance coverage varies from one policy to another and from one company to another.  Different auto insurance coverage carry different premium rates depending on various factors relating to the car owner, car driver or the type of car.

According to various government laws vehicles need to have a minimum specified insurance cover. This means that any policy cover below the specified limit of the government is insufficient and illegal. This could result in problems in the case of an accident and could lead to heavy financial losses for the investor.  An investor should also assess how much insurance cover would be sufficient in case of an accident. This could be figured out by the price of the car and the driving habits of the driver of the insured vehicle.  If the car is more likely to be involved in an accident then a more expansive insurance cover should be sought.

Insurance covers are also provided for specific parts of the vehicle or for specific accident scenarios. This means that an insurance cover for a hit to the rear end of the car could be different from a hit to the front of the car. There could be special insurance covers for damage to the vehicle from various external objects. This could mean that if a window or glass of a vehicle is broken by the throw of a ball then the investor could claim expenses from the auto insurance company. Apart from accidents, many auto insurance covers also relate to vehicle thefts.

The two major types of insurance covers available for automobile owners are comprehensive and collision. A comprehensive cover acts as a protection for the automobile from any damage to the car apart from a road accident. This means that under a comprehensive cover the vehicle has protection from natural calamities, fire, robbery, defacement or wreckage etc. On the other hand a collision cover acts as a protection for the vehicle in case it is damaged in a collision with another vehicle.