Types of Car Insurance Policy

In today’s marketplace paying month to month usually increases the premiums because the policyholder is considered a higher risk. The government makes it mandatory for all vehicle owners to apply for diverse insurance coverages to provide support in case of an accident. There is an array of insurance policy for the policyholders to choose from comprehensive policy, collision coverage, personal injury protection, uninsured along with underinsured motorist cover and bodily injury liability cover. The insurance industry provides a variety of car insurance policies. This article gives an individual who is shopping for auto coverage diverse auto insurances options to choose from.

Types of Car Insurance Policy

The first car policy is the comprehensive which gives an extra level of coverage incase of an accident involving another vehicle. Additionally coverage of comprehensive car insurance  assists the policyholder to receive pay in instances their car gets damages emanating from besides collisions for instance, accidents with animals, missiles, vandalism, glass breakage, earthquakes, among others. For example, if a car unexpectedly is attacked by a missile, the comprehensive cover can pay for the damages. Not to mention, the comprehensive covers is optional but with a guarantee to pay either to repair or replace the vehicle, up to the car’s actual cash value. Importantly, if the vehicle is new or very expensive, the car owner may consider to applying for the comprehensive cover.

The second car insurance cover is the collision coverage that assists in repair and replacement of a covered vehicle due to damage after the policyholder’s vehicle gets involved in an accident with another vehicle, hitting an object such as a fence as well as damages from potholes. Although, it is worth noting that this car insurance policy covers only one’s motorcar but not normal aging or mechanical failure of a car. Also, it is important to mention that this car insurance cover is optional.

The third type of car insurance policy is personal injury protection (PIP) covers the policyholder along with a person riding in the holder’s car for injuries regardless of what caused the accident. Moreover, the insurance cover is like a medical cover because PIP can cover for funeral expenses, work loss benefits and rehabilitation along with medical expenses. Furthermore, the injury protection is mandatory or optional depending on the state the policyholder stays.
The other car insurance cover in the market is the uninsured along with underinsured motorist cover. The car policy takes care of the policyholder who is hit by a driver who does not have an insurance cover as this insurance product can help the holder to pay medical bills, repair the vehicle, among others. Equally important, this motorist cover might be used to cover policyholder who is a pedestrian who has the option to buy the property damage coverage or bodily injury coverage. Also, this cat policy can be optional, mandatory depending on the location of the policyholder.

Bodily injury liability is the last type of car insurance discussed in this article. The policy is applied once one is at fault in an accident and it covers injuries to other party entailing lost wages, medical expenses as well as pain and suffering. Additionally, the insurance covers any other person who is driving the car. For instance, when a driver hits another vehicle and unfortunately, he /she breaks their hand, then the bodily injury liability cover will pay for surgery, x-rays along with time spent out of work.

In conclusion, government has formulated guidelines to provide citizens with financial protection in case of an accident. There are several companies offering the insurance coverages at different premiums, giving the policyholder many options to choose from. These are the various types of policies and bodily injury liability cover, personal injury protection, collision coverage as well as comprehensive policy.