What are the different type of Coverages?

There is a different type of insurance coverages that you can acquire for your during your premium whether it is home insurance, car insurance, health insurance or life insurance. Let’s find out the types of coverage are available.

WHAT IS LIABILITY COVERAGE

Liability coverage is the insurance policy that covers you if you cause an accident and hurt someone or damage someone’s property. It comprises of two parts i.e. bodily injury liability and property damage liability. Bodily injury liability covers expenses related to body damage or death of another person in an accident. This includes hospital and medical bills, long-term nursing care, rehabilitation, funeral expenses, lost earnings and other costs to the limits stated in your insurance policy. On the other hand, property damage coverage pays for the damages caused by another person’s property. This includes repair or replacement of the damaged items such as vehicles, buildings, and pets among others. Liability coverage also pays for the legal defense costs if you’re sued for involvement in an accident. However, this auto insurance coverage doesn’t cover injuries or damage to your property.

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Type of coverages

UNINSURED AND UNDERINSURED MOTORIST COVERAGE

Uninsured motorist coverage is the auto insurance coverage that helps you pay medical bills or damage to your car if you’re involved in an accident, and the at-fault driver doesn’t have liability coverage insurance. Alternatively, underinsured motorist coverage is the insurance coverage that covers any damages caused to you or your property by a driver who has an insufficient liability coverage limit.

WHAT IS COMPREHENSIVE COVERAGE?

Comprehensive Insurance is an auto insurance coverage that protects your car against damages that are not related to the collision. It covers losses such as fire, natural disaster, falling objects, vandalism, theft, civil disturbance or animal damage.

WHAT IS COLLISION COVERAGE?

Collision insurance is the insurance coverage that covers some or all of the repair or replacement expenses when your vehicle is damaged in an accident. When involved in a covered accident, collision coverage helps to pay for the cost of repairing or replacing the car minus the deductible amount. Collision coverage does not cover damages that occur to your vehicle when not being driven such as storm damage. However, this is included in comprehensive coverage. Additionally, this auto insurance coverage does not cover bodily injury expenses. These are included in the liability coverage. Collision coverage is deemed essential if you owe money on your car or you’re leasing it.

MEDICAL PAYMENTS COVERAGE?

Medical payments coverage, also referred to as medical expense coverage helps to cover the medical expenses associated with vehicle accidents. This auto insurance coverage pays medical expenses for you, your passengers and family members in the car during the accident regardless of who is found to be at fault. Alternatively, it can cover you if you or your family member is injured in an accident out of your car. While many people would think that this type of insurance is not important to them if they have health insurance, it has additional benefits since it covers your passengers, something health insurance might not do. Among the medical services under this insurance cover are; surgery, doctor visits, x-rays, hospital bills, EMT and ambulance fees, prostheses, and professional nursing services.

WHAT IS PERSONAL INJURY PROTECTION?

Personal injury protection (PIP) coverage is a “no-fault car insurance” cover that covers expenses related to your injuries when you get involved in an automobile accident. Personal injury protection coverage includes the following events; medical expenses lost wages due to sustained injuries, child-care expenses, and funeral expenses. Since a lot of time is required in determining blame, filing lawsuits and finally to make payments to the affected people in an automobile accident, this auto insurance cover helps to avoid this waste of time since no blame assessment is required. This is a no-fault car insurance.

CAN I CHANGE DETAILS ABOUT MY INSURANCE DURING THE POLICY TERM?

Most insurance companies allow changes during the policy year, but you should look into this prior to finalizing your policy. You would be responsible for any difference in costs between the policies, which usually are spread out over the remaining payments. Be sure to read the details of your policy if this is something you are interested in.

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