WHAT IS CAR INSURANCE COVERAGE?
Auto or car insurance is compulsory by law. This is the legal requirement to get the minimum level of the insurance before you drive your car. The car insurance coverage will be the different by-product. But following is the list of the car insurance coverage:
- Property damage liability- This covers the property losses to the 3rd parties just like a car of some other person.
- Bodily injury liability- This covers the claims regarding bodily injury in the accident.
- Medical payments- These payments are for a policy owner and some other passengers in a car of the policy owner.
- Uninsured & underinsured motorist coverage. It covers you when a negligent driver gets insufficient insurance or no insurance. In most of the states, it covers just bodily injury damages, although few states include the losses of property damage.
PHYSICAL LOSS PROTECTS DAMAGE TO A CAR IN THE GIVEN INSTANCES:
- Covers damages to the car in the accident.
- Covers the non-collision physical loss in case your car damages in windshield breaks or storm etc.
Insurance of a car actually comes in various kinds of coverage. Its 2 types are below:
THIRD PARTY CAR INSURANCE POLICY:
The insurance policy is a contract between 2 parties that is insured and insurer. So, the third party is some person who is not an insured or an insurer. 3rd parties are actually fare-paying, pedestrians, and non-fare paying passengers in the vehicle. Those people who are in the auto like an owner, driver, or passengers are the third parties too. The fare paying passengers are those people who do traveling in the public transport just like auto rickshaws, taxis, and buses.
The non-Fare Paying Passengers are those people who get permission to do traveling in the vehicle without any charges. The 3rd Party car insurance policy protects the legal liability for the compensation to be given arising from an accident due to the vehicle. This includes the liability for the injury or death to the third parties such as an occupant of the other vehicles, pedestrians, and people other than the passengers.
COMPREHENSIVE CAR INSURANCE POLICY:
It covers the damage or loss done to a vehicle as well as its insured things due to the result of man-made and natural calamities. Such calamities might be grouped as ‘Man Made Calamities’ and ‘Natural Calamities’. The natural calamities are fire, shock damage because of the earthquake, explosion, rockslide, lightning, landslide, flood, frost, typhoon, hailstorm, hurricane, cyclone, storm, inundation, and tempest.
While the man-made calamities are: burglary, terrorist activity, housebreaking, malicious act, theft, accident by the external means, strike or riot, and the damages during traveling by the road, inland-waterway, rail, or air. The policy includes the personal accident coverage that gives the accident coverage for a driver of a vehicle when driving.
http://www.insuranceconsellor.com/car-insurance-coverage/
