What is auto Insurance and its types
Auto insurance is an agreement between a auto insurance company and a policy-holder. People get auto insurance for the protection of financial loss in case of accidents. If you have car in your home then you must have heard about the term auto/car insurance. But most of people do not have proper knowledge about the auto insurance and they face difficulty in selecting a good insurance plan according to their financial needs. Before buying an insurance policy you must consider some features of auto insurance plan.
In this article we will tell you about the different types of auto insurance and how to select a good insurance plan according to your needs.
Factors to be considered
There are 3 important factors that must be considered before selecting auto insurance policy. These factors will help you in selection of auto insurance plan.
Decide about the money that you are going to pay every month.
Driving license and driving experience.
Type of your car/ vehicle.
Auto Insurance Types
There are different kinds of auto insurance policies. We will tell you about these one by one in this article.
In liability insurance the company pays against the body injury as well as vehicle damage including property damage done by your vehicle in case of accident. The company is also responsible for the payment of court charges and all medical expenses. Every country have different criteria about the liability coverage decided by the laws of country. But one should have more liability coverage than the required liability coverage.
In collision insurance the company pays against damages done to your vehicle specifically by collision to some other vehicle or any other thing.
In comprehensive insurance the company pays against damages done to your vehicle other than liability or collision. It may the situation when your vehicle is stolen or got hit from animal. You must have comprehensive insurance if are able to pay for this policy as it is one of the best policy.
Personal Injury Protection Insurance
In personal injury protection insurance plan the company pays against your personal injury done as the result of auto accident. If you are an insured driver then company will pay all your medical expenses whether it was your mistake or the other.
Uninsured Motorist Protection Insurance
In uninsured motorist protection insurance plan the company pays against the damages done to your vehicle by a person that do not have liability insurance.
Under-insured Motorist Protection Insurance
In uninsured motorist protection insurance plan the company pays against the damages done to your vehicle by a person that do not have sufficient liability insurance.
|No||Canadian Companies||U.K Companies||USA Companies|
|1||Johnson Insurance Company||Aviva Insurance Company||USAA Insurance Company|
|2||Canadian Direct Insurance Company||Direct line Insurance Company||Erie Insurance Company|
|3||Intact Insurance Company||Admiral Insurance Company||Auto Owners Insurance Company|