Types of Car Insurances

Insurance is to minimize the risk for the property or for the life. The coverage of the insurance is based on the policy company offered and the insurer selected method. When the coverage is increased the premium for the insurance is also increase. Most of the states at present insurance for cars are made compulsory. Now we will see the different types of insurances available for the cars.

  • Liability insurance: When a person is in the event of the car accident and the police is decided that mistake is that person, he/she have to pay the loss occurred by the event. In such those cases liability insurance is helps to protect from loss. The coverage is to the person injured and the property damaged. So there is no need to pay from the pocket.
  • Collision insurance: Whenever a person is in the event of accident and the car is damaged the insurance company will pay for it. When the car is totally damaged the company will pay for it. But the payment is based on the present value of your car. For example the car is used for fifteen months the company calculated the market rate and that amount will give.
  • Comprehensive insurance: Liability insurance and collision insurances are cover the risk only when the car met an accident. But in case of theft or animal collisions or any other damage, liability and collision insurances will not cover. In case of comprehensive insurance it will cover. When your car is installed with anti theft and tracking system the policy premiums will come down.
  • Uninsured motorist protection: When you met an accident with a uninsured motorist the uninsured motorist protection will cover your and your car expenses. When the motorist is having insurance and the amount is not sufficient to meet the expenses, remaining expenses will covered by this policy. If the expenses are met with the coverage amount, uninsured motorist protection will not pay any amount.
  • Medical and personal injury protection: When you meet an event of accident and are injured, medical expenses have to be paid. In case of Medical and personal injury protection policy, all the medical expenses are covered. Along with you, other passengers’ medical expenses also come under the coverage. It does not matter whose fault it was.
  • No fault insurance: No fault insurance policy will cover the injuries and property damage. Whose fault resulted in accident is not taken into account. No-fault insurance is more expensive when compared to other insurance policies.
  • Gap insurance: Gap insurance covers the risk gap between the car market value and the actual payment that has to be paid to the financing company. For example, A person have a car market value of $15,000 and the loan have to pay $20,000. In the event of theft or accident or any reason, he loses the car. Basically the car insurer compensates for $15,000 but still he has to pay $20,000 to the financing company. The remaining amount $5,000 will be covered under gap insurance protection.

Before taking any car insurance policy consider the above all types of policies. It will help to take a good decision for you.