Car Insurance – What are the Various Types?

Sports cars, minivans, SUVs, sedans and other cars are ruling the market now. As a car owner, you can easily understand why car insurance is necessary today. For people who buy cars, auto insurance packages are wonderful options that ensure proper protection from financial expenses associated to personal injuries, medical coverage, liability, physical injuries etc. The market has not one but multiple forms of auto insurance packages that cover various aspects. Know about the various types of car insurance policies that you can choose from.

Comprehensive Coverage
Basically, this kind of coverage keeps your car covered from Acts of God. You need to spend money on repairs / replacement etc if your vehicle gets struck by lightning, catches fire, gets buried under a huge tree or gets washed away in a flood, although these are might not be accidents in the technical sense. In such cases, a comprehensive insurance policy can be useful. This type of plan can also help cover the injuries of other people, damages to other’s properties etc after an accident.

Liability Coverage
It covers liabilities for death, physical injuries etc that you might be held responsible for. A Liability Coverage can cover pain, suffering, loss of income, medical bills etc in case of a bodily injury. It is essential to have this kind of coverage as a driver. With such a plan, you can cover property damages, injuries etc that can arise when an accident happens. Property damage liability insurance and Bodily injury liability insurance are two forms of liabilities.

Collision Coverage
This helps cover vehicular damages in case your car gets hit by some other car or hits other’s cars. The terms and conditions included in your insurance policy are limited by the coverage that you have. Collision insurance covers the expenses for damages resulting from your vehicular collision that can have an impact on the book worth. Such kind of coverage is more concerned with damages resulting from theft, natural disasters, vandalism etc.

Underinsured motorist Coverage
It covers passengers and household members for personal or physical injuries, death and damages that result from hit and run or faulty driving by an underinsured or uninsured driver. Those covered by such a policy include the passenger, policy holder, driver and other drivers. If there is an accident involved with an underinsured or uninsured driver, any expenses experienced by you or your riders will be met by this type of policy.

Medical insurance
It tends to vary if it concentrates on passengers and driver. This type of package can cover any expense for medical treatment for passengers and driver. It might also offer compensation for suffering, pain, disability etc associated to accidents, although that is not always the case.

There are quite a few other kinds of car insurance policies existing as well, which include towing insurance, glass replacement insurance and more. Such insurance packages are often unnecessary and are not much popular as these are often expensive. These insurance policies are more suitable in some special cases.