A car insurance is one of the most important things that every vehicle owner should be aware of. However, it is not always possible to keep one updated on all the latest car insurance policies as they can generally consists of several different types. Every country has different laws and regulations when it comes to auto insurance. Hence, all the different types of car insurance policies cannot be explained to the fullest. Following is a brief summary of the most common types of car insurance packages and their benefits.
The most common types of car insurance policies are Auto Liability Coverage, Personal Injury Protection, Medical Payments, Collision Insurance Coverage, Comprehensive Insurance Cover and Emergency Road services.
Auto Liability Coverage
Auto liability coverage comes in handy if you happen to run into an accident and/or injure someone with your vehicle while driving. These packages also provide cover for any damage that you inflict on another vehicle or property. They normally fall into two basic categories, which are bodily injury liability and property damage liability. While the former covers mainly for medical expenses, pain, suffering, lost wages and a few other special damages, the property damage liability covers damages caused to property. These types of car insurance packages are also found to pay for legal defense costs.
Usually, it’s the state law that dictates the minimum amount of auto liability coverage; however, you can see higher amounts as well.
Personal Injury Protection
These types of car insurance policies pay for all the necessary medical and treatment expenses for the insured that arise out of an auto accident. Additionally, they also pay for rehabilitation, replacement of services (like child protection if the accident leaves the parent disabled), lost earnings and funeral expenses.
Medical Payments
Medical payments can be availed in many countries. As their name implies, they cover only for the medical expenses that come from an auto accident. In some cases, they cover for funeral expenses as well (if those are related to the car accident).
Collision Insurance Coverage
This type of car insurance (or as the term is know in Danish bilforsikring) policy helps pay for all the damages that result from a collision, either a mild scratch or a head on collision. Normally they are defined as policies that cover:
- A collision of the insured vehicle with another
- A collision with an object
- A vehicle rollover
Comprehensive Insurance Cover
A comprehensive insurance cover helps you by paying for the damage or loss that occurs to your vehicle, which is neither caused due to a collision nor a vehicle rollover. There are quite a number of ways through which you can get your car damaged: fire, wind, hail, flood, theft, vandalism, hitting an animal – just to name a few. You might be required to pay a deductible with such type of policies.
Emergency road assistance is an additional service that most insurance providers offer with their insurance packages these days. Examples for such services are towing, emergency fueling, medical assistance, accommodation facilities and other valued benefits.
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