Kinds Of Coverage

Following are some of the most popular kinds of car insurance cover available to customers:

• Car Collision Coverage – Car collision coverage provides for losses to your car caused by collision with another vehicle regardless of who was at fault. Car collision coverage is the most expensive type of car insurance. You have to decide a deductible (a percentage of total loss amount that you will pay) before the insurance company pays remainder of each covered loss. Higher the deductible is lower would be the premiums. If you have an old car, you may want reduced coverage particularly if your car is worth less than the sum of your premiums and deductible.
  
• Comprehensive Coverage - Comprehensive coverage covers damage to your car from accident except for collision or overturn. Examples of this cover include fire, theft and vandalism. You have to decide a deductible (a percentage of total loss amount that you will pay) before the insurance company pays remainder of each covered loss. If you increase your deductible from $250 to $1000 your annual (premium) savings would amount up to 20 percent.
  
• Liability - If you were responsible for the accident, liability insurance would pay for injuries and property damage costs to others affected by the accident including legal defense costs if applicable. Bodily injury coverage provides for medical expenses and salary lost due to injury.

• Medical Payments - Medical payments covers medical and funeral expenses of both the driver and passengers irrespective of who was at fault. If you are injured driving someone else’s car with their permission, you medical payments cover you.
  
• Personal Injury Protection - Personal injury protection covers medical expenses, loss of income (from work), accidental death, funeral expenses and survivor benefits. It also provides medical expenses for driver(s) and passengers if involved in an accident.
  
• No Fault Insurance - Auto Accident Compensation Laws (in America) allow victims to collect medical and hospital expenses directly from insurance companies irrespective of who was at fault. Despite legal variations of no fault insurance, victims are allowed to sue party at fault if damages are beyond a predetermined limit.
  
• Underinsured Motorists Bodily Injury - Underinsured motorists bodily injury provides cover up to the value of the policy. In one of the motorists in the accident is underinsured for bodily injury the other driver’s underinsured motorists bodily injury covers his/her losses as well.
  
• Credit Insurance - Credit insurance is popular with the dealers. It pays off your (remaining) car loan in case of permanent disability and death. Premiums of credit insurance range from $10 to $40 per month depending on your car loan amount. Credit insurance is not very popular with consumers whose life and disability insurance policies already serve the same purpose.
  
• Gap Insurance (Leasing Only) - Gap insurance provides cover for situations such as theft when you owe more on the lease than the car is actually worth. Gap insurance pays current or replacement value of your car in such cases.
  
• Car Rental – If your car is in a workshop for repairs (from an insurance claim) car rental insurance pays $15 a day for a rental car for up to 30 days. Many sub contractors’ start at $25 a day for luxury models and can go up to $50 or more. If your car is damaged severely and cannot be repaired in 30 days you pay the remaining cost of renting a car. Thus it is a good idea to choose the highest available limit, as the cost for various covers will vary only by a few dollars.