The Basic Types of Auto Insurance Policy

When searching for an auto insurance policy that befits you, it is not the best to jump at any policy. One of the things to know in order to come up with a very good auto insurance decision is to know what policies are available as well as understanding what each covers. For that reason, we shall be looking at some basic types and what they cover.
   The Liability Coverage
    The Liability Coverage, in most states, is the minimum you are required by law to have. However, there are two sides to this.

    1. Bodily Injury Liability - When other people are injured in an accident in which you are legally responsible for, this takes care of the medical costs associated to such injury and in the event of law suite filed against you, it will take care of the legal defense costs, all in accordance to the agreed terms and conditions stated in the policy.
    2. Property Damage Liability - Just as the Bodily Injury liability covers person (s) involved in an accident you are liable for, Property Damage Liability covers, as the name indicates, on any damaged property arising from an accident legally caused by you. It may be that your car runs into another vehicle, a house, a fence, etc.This takes care of the repair or the replacement of such property according to the agreed terms.
      •  Collision Coverage
      This is policy covers damage(s) to your car in a collision whether you are at fault or not.However, the bills to pay by your auto insurance company will be subjected to your deductible (the amount you pay out of your own pocket before your insurance company start paying it's share of costs). You need to bear in mind that, the smaller the amount of deductible you pay, the higher your premium.
      •  Comprehensive Coverage - This policy covers damages to car which are not vehicle collision related. In other words, it covers those damages which are brought about what could be termed "act of nature" incidents such as earth quake, storm, flood, etc. Fire,vandalism, theft also falls under this coverage. As in collision, the issue of deductible also arise here, you will be required to pay any amount comfortable for you as deductible but the higher you pay, the lesser your premium.
      •  Uninsured /Under insured Motorist Bodily Injury Coverage- This auto insurance policy covers you, your insured family members and your passengers as stated in the policy terms and conditions in the event of accident caused by a negligent driver who is not insured. However some states even has the property version of  it called uninsured/under-insured property damage.
      The above the basic ones, but we still have some others such as: Medical/Personal Injury Protection(PIP), Gap, Towing and Labor, Rental reimbursement

      Medical/Personal Injury Protection (PIP): This policy covers medical expenses on you and your passengers in an auto accident, it may also cover lost wages.

      Towing and Labor/ Roadside Assistance: This covers cost associated with towing of vehicle to the point of repair and repair cost after an accident.

      Rental Reimbursement: This covers car rental cost made after damages to your car, if not drivable, after an accident.

      Gap Insurance: For those on car loan, this policy pays for the amount needed to be paid up on such car, in the event of an accident.

      For your car insurance needs and more take a dash to www.idealautoinsure.com.