Auto insurance helps you manage all the financial loss that you incur in case of an accident. It is an agreement between you and the insurance company. In this agreement, you pay monthly payments known as the premiums, and the insurance company accepts to compensate you for the losses as stated in your policy. Auto insurance provides medical coverage and other property and liability coverage.
There are six types of auto insurances. Most of the states need you to purchase some, but not all of these policies. In the case of a car refinance, the lender has his own requirements for insurance. Most of the policies are for a period of six months to a year. The insurance company is supposed to notify you when the renewal is due so that you can pay your premium.
Here is a detail of all the six coverage:
This coverage covers your treatment in case of an accident; it also covers the medical payment of your driver and all the people present in the car when the accident happened. This plan can also cover the cost of replacing services by an injured and lost payments.
This insurance covers the injury that you cause to someone else in an accident. Your family members are also covered even if you are driving someone else’s car with their consent. It is advisable to go for multiple insurances so that you are well covered in case of an accident. If you don’t have a competent insurance, you may be sued for a huge amount that will put a hole in your pocket.
This type of coverage gives you protection in case you cause damage to somebody’s property in an accident. It includes damages done to houses, poles, lamp posts, fences, and other related structures of the house.
This insurance covers your loss even if you are at fault in an accident. It pays for all your car repairs and maintenance. This policy is normally sold with a deductible of a certain amount. The deductible is not paid in the cases you are at fault in an accident. If you are not at fault, your insurance company can try and recover the insurance they paid to the other driver’s insurance company. In certain cases, you may even get the deductible.
This insurance covers you, your driver or any member of the family in case you are covered by a non-insured car or if it is a hit and run case.
This policy covers you for damage caused due to the earthquake, fire, flood, storm, vandalism, riot, explosion, missiles, falling objects or any contact with animals like deer, leopard, or birds.
This insurance has a certain premium attached to it in the form of a deductible. You can choose for a higher deductible in order to get a lower premium. It also insures your windshield and any cracks in your glass.