Different Types Of Car Insurance

This article tries to simplify different car insurance plans available to guard you and family.

Insurance cover for cars is categorized into different types. It is easy to ascertain what you need from your car insurance ahead of getting into choosing the suitable insurance cover. As it goes, a car insurance is bought in order to protect your self in case you suffer a loss to your own self and your family.


Liability Coverage - Liability
1. Bodily injury liability - BI
Covers other people's death or bodily injuries for which you are responsible. Next, it also provides for a legal defense if second party in the mishap sues you in the court. BI covers may be for such things as medical bills, loss of wages or suffering and pain.
2. Property damage Liability PD
Covers you in case your car damages someone else's property. Mostly this covers their car, but also includes a house, a fence or any other property damaged in an accident. It provides for legal defense in case another party sues you.



Physical Damage Coverage COMP AND COLL
1. Comprehensive Coverage not including collision or OTC
Covers your car, and sometimes other vehicles you are driving for losses consequent of occurrences other than collision. For instance, comprehensive insurance covers damage to your car if it is stolen; or because of flood, fire, or animals. Covers fixing your car subject to deductible you select. It is limited by the conditions contained in the policy. Comprehensive coverage is recommended when you have a loan or lease. This is not needed in some states, but if you have a loan or a lease, the lien holder will ask for it.

Collision Coverage

Collision coverage is not absolutely essential but the lender will require it. You know the classes of collision coverage are limited, standard and broad form. If the opposite driver is more than 50% at fault you may sue him. Deductible holds place and it varies from $50 to $250. Nevertheless, buying broad form collision coverage frees you from deductibles if you are less than 50% at fault.

By: Alevoor Rajagopal

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Alevoor Rajagopal, a business consultant, lends voice to fair practices in car insurance matters. He also writes passionately on showcasing individuality with MySpace layout.