Getting the insurance done for the first time might be a confusing task as many questions arise in the minds of the customer and among one is the question that what are the different types of car insurance policies are available. There are large numbers of car insurance policies available and the most common among them are as follows and in most of the cases the customer buy more than one policy as each policy has its own coverage area.
Liability insurance:
In order for driving a car you must get the car insurance done in 2 states as a condition. Base for the liability insurance is that the person might cause any sought of damage to property or bodily harm and may be unable to pay for the cost of repairing their property or medical expenses. If the policy holder causes an accident then in this case all the expenses will be paid by the insurer. Generally the policy holder will only have to pay a small portion of the total amount in certain cases, which is commonly a deductible amount and nominal by nature.
Taking an example, if the policy holder met with an accident and caused damage of around 50000 Rs to the other vehicle, and you have a Rs. 5000 deductible, then in this case the insurance company will have to bear all the expense of 45000, and you will only be liable to pay only Rs 5000 which was the previously mentioned deductibles. The higher the amount of deductibles, the lower will be the rates earned by you from the company. Generally most of the types of insurance policies have deductibles associated with them already. Each liability policy has a different limit for medical injury and property damage. As generally seen on the insurance policy statement, a large amount of sum separated by slashes, such as the bodily injury 50000/100000.This statement indicates information about your coverage limit per person and the total limit amount of the policy.
Collision Insurance:
Damage caused to the policy holder’s vehicle will be covered under this collision insurance policy. This coverage will bear all the damage which is over the deductibles and up to the policy limit, and only in the case that it is caused on purpose i.e. customer can’t drive his brand new car into the pole, since he was struggling with finances and needs some quick amount of money. The insurance company will first investigate and they only will decide whether to accept or to deny the claim.
