Auto Insurance

The coverage provided by an Auto insurance policy can be broadly classified into Property, Liability and Medical coverage. Where the property coverage pays for the damage of your car or the theft of your car, the liability coverage pays for the injury or damage caused by you to the third party or its property, medical coverage pays for treating injuries etc. There are six different kind of coverage included in an Auto Insurance Policy, you may have to buy some and not all according to the requirements:

• Medical payments or Personal injury Protection: It pays for the medical payments of the driver and the passengers of the policy holder’s vehicle.
• Injury liability: This coverage is for the injuries caused to the other party by the policy holder or his/her driver in an accident. This coverage also works in case of the policy holder driving someone’s car with his permission. The family members of the policy holder, if listed in the policy are also included.
• Property damage liability: This pays for the damage caused by the policy holder to the property of the third party, usually it is the vehicle but it also includes other properties like lamp posts, buildings, fences etc.
• Collision: This coverage pays for the damage caused to the policy holder’s car in case of collision to any object, vehicle and also when the vehicle flips over.
• Comprehensive: Damage caused by the acts that don’t come under Collision like theft, fire, explosions, earthquake, flood, riot and other such natural or unfortunate causalities.
• Uninsured and underinsured motorist coverage: This coverage includes the policy holder, his family member and his driver. If an underinsured or uninsured hits one of them then the coverage comes in act and pays for the holder.

Most of the policies hold the time period of six months to a year and the insurance company notifies when to pay the premiums or when is the time to renew the policy.