subject: Types of Auto Insurance Plans Available [print this page] If you are going to get a new car then it becomes mandatory to acquire auto insurance coverage for it. You should plan out for insurance coverage which will protect you and assist you in paying your expenses at the time of any uncertain event. Auto insurance is nothing but assistance or a backup plan that you prepare to keep yourself relieved from tension of future problems. Basically, you can classify auto insurance into three forms i.e. liability insurance coverage, coverage for physical damage and the last one is uninsured motorist coverage. All these insurance types serve different purposes.
Generally, people go for all three of them or just the liability insurance coverage. Liability insurance is a type of insurance which is the most popular one among all. It has been made compulsory by most of the states as it is liable to secure the damages caused to other person involved in the accident with you. Moreover, liability insurance covers all the medical expenses of the other person. If lawsuit is filed against you, this plan will be paying the expenses for it. It also covers the damage caused on property i.e. car, gates or some other property. This plan is s important from the point of view of covering others. Its importance makes it necessary and that is why every state is making it compulsory.
Now, the second one is insurance for covering physical damage. Insurance for physical damage can be further classified as collision and comprehensive insurance. Comprehensive insurance coverage is liable to cover the damage caused on the policy holder's vehicle due to any disaster, theft and any other such occurrences except the ones caused due to accident. On the other hand, collision insurance is liable for covering the damages caused on the vehicle whether you are the culprit or the victim.
Now, the last but not the least insurance plan is uninsured motorist coverage. This kind of auto insurance plan is responsible for covering you and your family members against any damage, physical of property type that has been imposed by a person who is not insured. However, all these different plans add up to give a large amount to be paid by you. For this reason people are hesitant in buying insurance policies. You can achieve cheap insurance plans easily if you are aware about some basic facts involved in this industry. For this, you need to educate yourself and keep yourself updated.
Types of Auto Insurance Plans Available
By: Esha487
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