Insurance policies differ, but categories for types of car insurance coverage are generally the same. Car insurance companies should go through each category with you to see if you have all the coverage you need – and to make sure you're not paying for more coverage than you need.
Car insurance companies follow industry and government regulated standards, but they tweak their policies to fit the individual needs of the insured – and the car insurance company. They do this by offering deductions, special payment arrangements, amenities such as car-towing services, and varying the levels of coverage and deductibles. Despite the personalization of car insurance policies, categories for types of car insurance are pretty consistent. However, some types of car insurance coverage are legally mandated, and others are not. The legal regulations can differ between states and territories, so it's best to inquire with the government motor vehicle department or your insurance company to find out what is legally mandated. Most car insurance companies are well-aware of legal requirements and assume you want that coverage as a part of your policy. If your car isn't on the road, but you still would like it insured, check to see if the regulations change for your scenario.
The types of car insurance that car insurance companies offer typically includes six categories: Bodily Injury Liability, Medical Payments or Personal Injury Protection, Property Damage Liability, Collision, Comprehensive, and Uninsured and Underinsured Motor Vehicle Coverage. Although all of these types of coverage protect you from financial destruction and liability, you can see that half of the categories of types of car insurance primarily protects others, and the other half protects you. Typically, each category carries its own pricing scale.
Bodily Injury Liability coverage is almost always legally mandated. When drivers carry bodily injury liability coverage, the car insurance companies will pay for medical costs and related injury expenses to anyone who is injured or killed by the driver with coverage. Similarly, Personal Injury Protection pays you medical expenses and lost wages, no matter who is legally responsible for causing the accident. For those concerned about the cost of medical coverage, Medical Payments Coverage can be added on to increase the dollar amounts provided for medical bills. If you opt to get Uninsured or Underinsured Motor Vehicle Coverage, expenses due to injuries will be covered if an uninsured or underinsured driver hits you. Uninsured and Underinsured Coverage will also cover you for injuries sustained in a hit-and-run accident.
If you cause an accident, Property Damage Liability covers the expenses for repairing or replacing the damaged property belonging to the person that was hit. Collision on the other hand covers damage to your car – whether you or another driver is at fault. Comprehensive Coverage is the type of car insurance that car insurance companies include theft, glass, fire, and extra protections under.
Car insurance companies offer a great deal of coverage, but only you can determine the type of car insurance coverage best for you. Review your coverage and pricing for each category when you're evaluating car insurance companies, and you'll eventually find the car insurance policy that is just your type.
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