| Car insurance protects you against any | | | | |
| financial loss that may happen due to an | | | | 1) Bodily Injury Liability |
| accident or theft of your car. It is a car | | | | |
| insurance company that issues car insurance | | | | This type of liability covers the expenses of |
| to you. A car insurance company will work up | | | | injuries that you may cause to someone else |
| a car insurance policy for you after | | | | while driving your car. Also the coverage |
| evaluating the various options like the make | | | | includes injuries caused to a person while |
| of your car, the premium that you are willing | | | | driving other person's car. |
| to pay, your insurance risk, etc. A yearly | | | | |
| premium has to be paid by you to the car | | | | 2) Medical Payments and Personal Injury |
| insurance company so that the company can pay | | | | Protection |
| for your loses that you may bear in the | | | | |
| future. All the terms and conditions are | | | | This type of liability covers the expenses |
| mentioned in the contract and it is your duty | | | | for the treatment of injuries to drivers and |
| as a car owner to look over all the points | | | | other passengers. The liability also covers |
| and ask the insurance agent any questions | | | | medical expenses and funeral expenses in the |
| that you have in mind. It is only after all | | | | case of death. |
| the terms and conditions are clear to you | | | | |
| that you should sign on the dotted line and | | | | 3) Property Damage Liability |
| pay the premium. | | | | |
| | | | This type of liability covers for damage to |
| Normally all car insurance companies have the | | | | the other person's car and your car. It may |
| same insurance policies. The premium to be | | | | also include damage to lamp posts, telephone |
| paid and the percentage of losses to be | | | | poles, fences and other public property. |
| covered in case of any accident may vary | | | | |
| slightly. Since the car insurance market is | | | | 4) Collision |
| very competitive, the premium rates and other | | | | |
| terms and conditions almost remain the same. | | | | This type of liability covers expenses for |
| | | | damage to your car or the other person's car. |
| A car insurance policy may provide property, | | | | Even if you are at fault, then also you will |
| liability and coverage depending on the type | | | | be reimbursed for the expenses of repairing |
| of policy. The property coverage covers | | | | the car. |
| losses for damage of the car or the theft of | | | | |
| the car. Liability coverage pays for any | | | | 5) Comprehensive |
| legal liabilities to other people for bodily | | | | |
| harm or property damage. And medical coverage | | | | This liability covers loses due to theft or |
| covers expenses for treating injuries, | | | | damage to the car by something other than |
| medicine expenses and funeral expenses in | | | | collision with another object or damage to |
| case of a car accident. You may buy the | | | | the car due to fire, falling objects, |
| different types of coverage depending on how | | | | explosion, earthquake, etc. |
| much you want to spend on your policy. | | | | |
| | | | 6) Uninsured and Underinsured Motorist |
| A car insurance policy usually consists of 6 | | | | Coverage |
| types of coverage. As mentioned before a | | | | |
| customer can select from the different types | | | | This liability covers damages to your car by |
| of coverage. Most of the car policies last | | | | another driver who is uninsured. |
| from 6 months to a year. Your car insurance | | | | |
| company will bill you when it is time to | | | | The coverages mentioned above are offered by |
| renew your policy and be prepared for a rate | | | | all car insurance companies. In almost all |
| hike. | | | | states, car insurance is mandatory. |
| | | | Therefore, it is your responsibility as a car |
| The different types of coverage are :- | | | | driver to have a policy. |