Types Of Automobile Insurance

By Author: Jerry Pickett
Total Articles: 4762
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Auto insurance is compulsory in most states across the US for motor vehicle owners. Anybody who has ever been in a car accident, no matter how small, knows why. The cost of damage and injuries can escalate very quickly. If the damage or injuries are severe you may even find yourself involved in a law suit as the other people involved in the accident try claim back damages to their property or themselves. There are numerous different auto insurance companies and as many brokers. Some target specific groups of people, for example: women or low risk clients. The majority of insurance companies, however, offer a broad based comprehensive auto insurance package made up of several insurance components. To find the best insurance policy for you, it is a good idea to have more information on the different types of auto insurance cover that are available to you.

Physical Damage Insurance

This is one of the most basic types of insurance and covers any physical damage that may happen to your motor vehicle. There are two further sub-categories of physical damage insurance. The first is collision damage insurance, which covers ...
... you if you are in a motor vehicle accident. In this instance the insurance pays for the cost of repairing any physical damage to your vehicle as a result of the collision. The second type of cover is comprehensive damage insurance, which covers damage resulting from incidents other than a collision. An example of this is damage to your vehicle from a hailstorm, or when a branch is blown onto your car and breaks the windshield. Comprehensive insurance will cover the costs of repairs to your windshield.

Property Damage Liability Insurance

In most instances collisions involve more than one vehicle, and it may turn out that you were at fault. In such cases it is essential to have property damage liability insurance. This will then cover the costs of damage to other vehicles or people's personal property that were damaged in the accident. It is sometimes also referred to as third party insurance. If, for example, you swerved to avoid hitting a dog running across the road and ended up crashing into someone's wall, then the property damage liability insurance would also cover the costs of rebuilding the damaged wall.

Insurance for Medical Payments

In an auto accident there is a distinct possibility of injuries. Some may be superficial such as minor cuts and bruises, but other injuries could be more life threatening and require advanced emergency medical treatment. Often following an accident, people require surgery or rehabilitative treatment over an extended period. Medical payments cover injuries related to you as the policy owner or driver as well as any passengers that may be traveling with you in the car at the time of the accident. Having an adequate level of medical insurance for your whole family is very important.

Bodily Injury Liability Insurance

If you have injured other people in the accident, they may lay a claim against you for bodily injury. If they have been physically affected by the accident they may suffer from a loss of income. It is natural for them to want to recover those costs and you could find yourself at the receiving end of a lawsuit. However if you have adequate bodily injury liability insurance then you will be covered and will not need to be overly concerned about such lawsuits.

Uninsured and Underinsured Motorist Cover

In some instances you may be involved in a collision where the owner of the other vehicle is not properly insured or for some reason has no insurance at all. They may have a very basic or limited insurance policy that does not include third party liability and you may find that the damage to yourself or your vehicle will therefore not be covered by their insurance policy. In this case there is a type of insurance known as uninsured and underinsured motorist cover. This type of insurance protects you when a negligent driver does not have adequate cover. In most states this relates only to bodily injury but some policies do also make provision for property damage cover as well.

When shopping around for auto insurance it has recommended that you get some comparative quotes. The easiest way to do this is to go online where brokers will provide you with a range of quotes from different insurance companies. On the websites the process is quick and convenient. You simply fill out a contact form with your details and requirements. Knowing what type of insurance you need and what is covered under each type will also help you make the decision as to which insurance policy is best for you.
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