Different types of vehicle insurance policies

If you own a car, you must be aware of the importance of having a vehicle insurance policy. Indeed, it is a daunting task to get hold of a car insurance policy but a car owner must have a third-party vehicle insurance policy. However, it only covers the third-party damages and not the actual damages that may have happened to your vehicle. Hence, having comprehensive vehicle insurance is prudent. You should choose a policy depending upon your vehicle type, driving conditions, and the style of driving. In this article, we have listed different kinds of vehicle insurance policies.

Liability Coverage

This is the basic and the most important cover one must buy. Under this policy, if your car meets with an accident, then you would get the repair or replacement cost of the damaged property along with the medical bills of the third-party arising due to hospitalisation or medical treatment. Liability coverage includes third-party injury and death or damage to third-party property. However, here, the damage to your vehicle is not covered.

Collision Coverage

Under this policy, insurance companies bear the cost of the car repair post-accident. However, if in case, the cost of repair exceeds the current market value of the vehicle, then the insurance company pays the current market value of the car. Further, zero depreciation insurance is also covered in this policy.

Personal Injury Coverage

This insurance policy includes certain coverage to overcome various risk factors. The insured gets this insurance in addition to the mandatory liability insurance. All expenses pertaining to the accident are covered under personal injury protection. Further, it also covers the medical bills of the driver and other passengers as well. The insurance company under such a policy will pay the medical bills, no matter who is at fault.

Comprehensive Coverage

The comprehensive policy includes all types of risk factors associated with the vehicle, driver, passengers, third-party vehicle, and third-party driver. Further, it also covers risk factors such as damage due to weather, flood, fire, and theft. Basically, it is for everything else that might go wrong apart from collision.