Auto insurance policies can be divided into different categories depending on the coverage they offer. Generally speaking, there are four types of policies known as Collision Insurance, Full Coverage Insurance, Uninsured and Underinsured Driver Insurance and No Fault Automobile Insurance. In addition to this, there are policies that support other needs such as covering a car loan, paying towing fees, or paying the cost of a rental car while your vehicle is being repaired. .
The most common insurance policies are:
Collision: any material damage caused to your vehicle due to an accident caused by any other vehicle or object is covered by this policy. The amount of the claim cannot exceed the actual cash value of the vehicle and is subject to a deductible.
Complete: All property damage to your vehicle caused by non-collision factors such as fire, theft, vandalism and even natural disasters such as floods, hurricanes or earthquakes are covered by this policy.
Uninsured Motorist Coverage (UM) and Underinsured Motorist Insurance (UIM): takes care of any injury that may result to you or to those insured in your policy from an accident that occurred with another driver or owner of an uninsured vehicle or underinsured. Generally, only bodily injuries are covered by this policy.
No-fault auto insurance: whatever the cause of the accident, the insurance company pays the medical expenses and the loss of salary suffered by the insured due to a collision under this policy.
Here is another additional coverage that an auto insurance policy holder can purchase:
Liability for property damage and liability for bodily injury: These two policies protect the insured against any claim made against him for causing property damage, including a vehicle belonging to another person or for causing bodily injury or loss of lives of other people up to the amount stated in the policy.
Auto Lease Protection: is an additional protection that you can add to your comprehensive collision or automobile insurance to close any gap between the amount of your car loan and the cash value of your vehicle.
Full tort and limited tort: available only in the state of Pennsylvania allows the insured to keep unlimited rights to take legal action against a negligent party or to recover the expenses incurred for certain damages.
Rental Fees: Known as Extended Coverage of Transportation Fees, the police pay for a rental car during the repair or replacement of your vehicle.
Medical expense insurance covers medical expenses for injuries sustained in an accident involving a vehicle for the insured, its passengers and other parties, regardless of fault.
Towing and Labor: An additional coverage option that can pay for all the towing and labor costs necessary to tow your damaged vehicle to a workshop or other location.