Varieties of Car Insurance


Car or auto insurance is a bond between the insured and the insurance company, with a fixed premium. It is mandatory for the insurance company to provide all the information to its prospective clients about the various policies available. Some of these policies are as follows: those which are concerned with providing insurance for liabilities (including property and bodily insurance), those which cover damages beyond the control of the insured, those which deal with providing medical facilities to the injured, uninsured or under insured driver’s insurance, those which cover the fall in the markets value of the vehicle, those that deal with full glace, those that cover personal injury protection, etc.

Liability insurance is the most important scheme for any car owner. It is available with almost all basic insurance coverages. It covers the costs of damage to property in case of an accident, and also takes care of the medical expenses to some extent in case of physical injury to the insured.

Medical insurance goes a step further from the liability insurance, and focuses on providing funds for health care facilities to the insured as well as the passengers traveling in the insured vehicle during the time of the accident. Therefore, it addresses the needs of not just the driver, but of all those traveling in the car. Along with medical insurance, some insurance companies also provide disability insurance and pain and suffering reimbursement. In case of uninsured or under insured policy, the insurance company will compensate the passengers of the car after the accident, even if the driver did not have an adequate policy cover.

Collision insurance compensates the insured individual in case of a fall in the market value of the car in case of an accident involving a collision. Comprehensive insurance policies provide the insured relief if his/her car is damaged due to vandalism, natural calamities like earthquakes, floods, etc, and other factors out of his/her control.

There are also other types of car insurance policies, like glass insurance (which covers damage to windows and windshield), towing insurance, etc. However, these are not very popular because of the high premium charged on them.

After making a decision as to which policy to opt for, an insurance seeker should ideally look for an insurance dealer who will help in getting the best polices at the lowest cost. However, the credibility of the dealer should be carefully scrutinized before availing his/her services, in order to avoid being exploited.