What Are The Basic Types Of Car Insurance Coverage?
Every person who drives a car on the streets is obliged to carry some kind of car insurance, according to the law. Here is a list and an explanation of the different types of car insurance available:
1. Bodily injury liability: This car insurance provides coverage for bodily injury claims from the people you might injure in an accident.
2. Property damage liability: This covers any property damages to third parties, such as another person's car you may damage and which you may cause or be responsible for.
3. Medical payments: Which you may have to make to the policy owner and other passengers in the policy owner’s car.
4. Uninsured and underinsured motorist coverage: This protects you when the negligent ‘other’ driver has no car insurance or insufficient car insurance (in most states, this covers only bodily injury losses, though some states also include property damage losses).
5. Physical damage: This covers damage to your own car.
a. Collision, which covers losses to your car when you are involved in a collision
b. Comprehensive, which covers most non-collision physical damage to your car (if your car is damaged in a storm, or a windshield breaks, for example).