I’m Going to start with Liability insurance/third party insurance,this is generally the lowest form of insurance offered by an auto insurance company. This is the basic insurance, if you are involved in an accident, and it is proved to be your fault, the auto insurance company will pay damages to the other party.The cover offered by the auto insurance company is usually set beforehand. This is the maximum amount the auto insurance company will pay in case of accident.
For example the agent will agree on a $10000 coverage per person.
You need to confirm with your auto insurance company what they will cover and what are the limits.You might be offered a very low premium by some auto insurance company only to realize that your cover is minimal and unrealistic. Auto insurance companys will also offer you a comprehensive insurance, as the name that indicates, you will be comprehensively covered. In simple terms it means that if you are responsible for a collision the insurance company will pay for the repair of the vehicle.
It is not always so simple, an auto insurance company will almost always have the final say on what amount will be paid out, so if it is cheaper to give you market value for the car, then they will.You might think that your car is worth $1000.00 but the real market value might be $500.00. This is not an uncommon scenario. So if the repair of your car are more than $500.00 then the auto insurance company will simply pay the book value of the car.You must make sure that the insurance company is not in control of the market value of the car, normally organizations like the AA will give an impartial market value.
As with the third party insurance, the auto insurance company will almost certainly limit the amount that will be paid out, but in general terms, a comprehensive insurance will have higher limits. A recreation vehicle needs its own insurance, a recreation vehicle insurance is not the same as auto insurance. You should not assume that because your car is comprehensively insured, so is your recreation vehicle.These are some more types of insurance, Medical (MedPay), Personal Injury protection (PIP), and the no fault cover.These insurances will cover you and your passengers medical expenses in the event of a collision.
The no fault cover means that the auto insurance company will pay regardless of who is at fault. This give you the piece of mind that, at the very least, your family and friends are covered. PIP is often a minimum requirement in some countries or states, ask your auto insurance company what the requirements are.Uninsured/Underinsured motorists’ coverage, this cover (also sometimes a minimum requirement in some states), will cover you if the person at fault is not insured or is underinsured.You must ask your auto insurance company what you will be charged in case of such a situation. Normally the auto insurance company should not charge you some extra premiums.
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