According to the coverage provided by the policies of auto insurance it can be divided into various categories. Speaking broadly there are four types of policies called as No Fault Automobile Insurance Policy, Underinsured and uninsured Motorists policies, Comprehensive Coverage Insurance and Collision Coverage. Apart from such policies there are various other policies that take care of other requirements such as paying for expenses of towing, covering a loan of an auto or paying the price of the rental car when your car is being repaired.
The most common policies of insurance are:
Collision: During an accident, in case any damage of property is caused to your car by some other object or vehicle, then it is covered in this policy. The amount of claim cannot go above the actual price value of the car and is subject to any deductible.
Underinsured Motorist Coverage (UIM) or uninsured motorist coverage (UM): this usually looks after any injury that has resulted to you or the individual that is insured in your policy by an accident that has taken place with other underinsured or uninsured vehicle owner or driver. Under this policy, usually only body injuries are covered.
Comprehensive: If there is property damage to your car, which is caused due to non-collision factors such as vandalism, theft, fire and natural disasters as well such as earthquake or hurricane is covered in this policy.
No Fault Auto Insurance Policy: The insurance company pays for the expenses of the medical irrespective of whoever is responsible for the accident and also for the loss of wages that is suffered by the insurer on account of collision in this policy.
There are some other coverages that a policyholder of auto insurance can purchase and they are as follows:
Bodily Injury Liability and Property Damage Liability: The insurer is protected from any claims that are being made against him to cause harm to the property if he has these two policies. This includes car belonging to other person or causing any injury of the body or loss of life to other person up to the costs written in the policy.
Limited Tort and Full Tort: These policies are only available in the state of Pennsylvania that permits the insured people to keep hold of, not restricted lights to bring a lawsuit against recover expenses or negligent party incurred for particular damage.
Auto Lease Protection: This can actually act as an additional protection to the comprehensive or collision policy of auto insurance so that it can look after if there is any gap existing between the price value of your car and your amount of auto loan.
Rental Expense: When your vehicle is being replaced or repaired, this policy pays a rental car it is also known as Extended Transportation Expense Coverage.
Labor and Towing: This is again an option of additional coverage that will pay for every important labor and towing costs for towing your car to a workshop or to some other location.
Medical Payments Insurance: This cover the expenses of medical for injuries caused during an accident including any car for the passengers, insured person and other parties without seeing the party at fault.