Know the different portions of coverage in a car insurance policy
In car insurance, you are given financial protection in case you or your driver causes an accident on the roads. In case if you want to know what types of insurance covers you might have to purchase, you just need to know what are the basic things covered in your auto insurance. In an insurance policy, some are compulsory while some others are optional. You can choose the optional ones as per your need and make a customized insurance policy for self.
- a) Liability of body injury – This part of the policy will cover up the cost that is associated with death or injuries which another driver or you may cause while driving your car. This part of the policy is very crucial as it covers your physical body.
- b) Liability due to property damage – This part will reimburse the person with monetary compensation if you or driver, anyone driving the car, cause any damage to the property of that particular person. It may be the fence, or any utility pole or any building. This portion of the policy is also very important, because it may act as a shield your pocket, if your car causes damage to any third person or his property.
Coverage which is frequently required
In many states, the following coverage is required.
- Personal Injury Protection (PIP) or Medical Payments – This portion of the policy will cover up the medical expenses for the injuries that have occurred to you and also to the passengers. In some cases, it also covers the lost wages and any other related expenses.
- Coverage for Uninsured motorist – In this case, you will get the coverage if you are hit by an uninsured motorist. In this part, you can also buy underinsured motorist coverage as it covers the cost which another driver may not have to cover up the expenses of a serious hit and run accident.
The following policies are optional and are needed for further protection of you and your car.
- Collision – This portion will reimburse you for the damages that may happen to your car if you make a collision with some other car vehicle or the object.
- Coverage for the glasses – Damage of the windshield is quite common and some policies also cover the rear and side windows and glass sunroofs.
Based on your needs and financial conditions, you can make a blend of options and make an insurance policy.