Wednesday, January 30, 2008

Types Of Auto Insurance Policies

Types Of Auto Insurance Policies by

If you do not hail from an insurance or commerce background, shopping for auto insurance can be a quite confusing affair. Auto insurance websites and proposals are full of insurance jargon that can sometimes get difficult to decipher. In order to make the overall process a little less taxing on your mind, we have explained some of the commonly bought auto insurance policies in a simple manner, as follows:

1. Property Damage related Auto Insurance: In case you’re found at fault in an accident that causes serious damages to the other driver’s car, then this type of auto insurance policy will pay up for all pertinent repairs of the other vehicle. Such policy can be a great lifesaver if you end up colliding with an expensive sports car due to your own mistake. In its absence you might even have to take expensive loans to cover up the damages. We all know that repairs of expensive cars never come cheap.

2. Personal Injury related Auto Insurance: This type of auto insurance is meant for covering up the injuries you suffer in a road accident. It normally covers up all your medical expenses and in some plans it also compensates for the lost wages due to your inability to attend office. There are certain options available in personal injury insurance through which you can even ensure that your nominees are paid compensatory amount in the unfortunate event of your death in a road accident. Please note, you’ll be paid medical expenses even if you are the driver at fault in an accident.

3. Comprehensive Auto Insurance Cover: Although very expensive, this type of insurance policy will ensure complete peace of mind in your driving routines. Such auto insurance cover pays up for all expenses resulting from any vehicle related accident that you suffer. It also includes coverage in the cases of fire, theft, vandalism and natural disasters. With a comprehensive insurance cover, you’ll never have to worry about waiting for months/years to claim damages from the other driver or his/her insurance company.

4. Bodily Injury related Auto Insurance: It is no news that medical expenses can cause serious damages to anyone’s pocket in America. In the even that you meet with an unfortunate accident and end up hurting the other driver, bodily injury insurance will come to your rescue to save you from the compensatory expenses. Hence, this type of insurance can prevent the other driver from suing you for medical expenses.

5. Collision Auto Insurance: Such type of auto insurance cover only compensates for your vehicle damages in an accident caused due to your fault. In the event that your vehicle is damaged beyond repair, you’ll be paid the existing market value of the car in cash.

6. Uninsured Motorist Auto Insurance: Despite the strict auto insurance laws, there are several negligent drivers out there who drive around without even the basic insurance cover for their vehicles. An uninsured motorist policy ensures that you are able to claim damages for your vehicle and yourself even if the other driver is at fault and he/she doesn’t hold an insurance cover to pay up your expenses.

We hope that by describing different types of auto insurance policies in this article, we have made your task of purchasing one a little easier.

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