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Friday, June 26, 2009

Types of Auto insurance: some useful information

We always want to protect those belogings, which are precious asset for us. No doubt an automatic vehicle, i.e. a car is always a precious thing for us. Therefore, we can purchase a suitable car insurance policy for our car, which is the main protective measure to safeguard it from all possible damages, generated from accidents or otherwise. In fact, taking an auto insurance policy for your car is compulsory now in all states of US.

The first step, undoubtedly, is the policy selection. Endless number of car insurance policies are available in market with various monthly premium amounts & various rates , offered by different Insurance companies. These policies mainly provide protection to a car against any kind of loss occurred by any mishap. You need to choose the policy which best suits your pocket….i.e., whose premium structure is affordable for you, and yet really useful for your beloved car.

I am giving below a brief information on various types of car insurance available to help you all understand it properly, and pick up a good insurance policy for your own car.

Types of car insurance

Car owners can select from a variety of car insurance types that are available with the insurance companies. They can opt for the policy that suits their need better. Car insurance broadly provides policies of 3 types: liability coverage, physical damage coverage and uninsured and underinsured motorist coverage. All insurance policies are limited according to the terms and conditions provided in each plan.
1. Liability coverage: Under this type of insurance, compensation is provided to someone who is physically injured or has died due to accident from your car. According to the insurance policy, bodily injury comprises of claims for medical bills, loss of income and many more. It also offers coverage if your car damages someone else's property, which can be another car, house, fence etc. In case the other party decides to file a lawsuit against you, liability coverage plans will provide you with legal protection.

2. Physical Damage Coverage: Under the policies of physical damage coverage of car insurance, your vehicle is insured for certain limited scenarios such as when the car gets stolen, damaged by flood or fire etc. It also insures when your car is damaged by another car or your car damages someone else's car. This policy is good for new cars where you can use this plan to repair the vehicle.

3. Uninsured and Underinsured Motorist Coverage: This insurance coverage provides for all bodily injuries of the insured member as well as other passengers who suffered damage or death due to the accident. It can also be used in case of insured and uninsured property loss. But the limitation for coverage available depends on the monthly payment of the insurer.

There are many more car insurance policies apart from the ones stated above. If you want to protect your favorite car, you can consult a good insurance agent who will not only provide you with details about what is car insurance and its benefits, but also inform you about variety of plans to choose from.


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