subject: Car Insurance - Know The Different Coverage Available [print this page] The insurance business has been flourishing - and there really are many kinds of insurance coverage. The broad classifications however, are divided into two -the life insurance and the non-life insurance. Due to the uncertainty in life, there emerges other kinds - health and pre-need coverage had become available. There is even a mortgage redemption policy. There really are many types of covers in this industry and the cover is dependent on the type of needs.
If there is one very basic of the different covers, it is the auto insurance. This type is mandatory - for the protection of both the passengers and the vehicle itself. And within the car category, there are still many sub-categories.
*Third party cover - The first and the most basic of all is the so-called third party cover. This policy is for the safety of the vehicle, the driver and even for the vehicle owner. This is conceived as a protection against accidental mishaps.
*Comprehensive cover - This covers all the people who are inside the vehicle when the accident happened.
*Public service cover - This insurance is designed for all vehicles used as a form of public transport. When accident happens, all the people inside the public vehicle are covered by the insurer.
*Own damage cover - The benefit of this insurance is on the car. Whenever, there occurs damage to the car, the insurer will pay for all the repairs. If some parts of the car had to be changed or replaced, the same insurer will pay for the reparation of the damage.
*Theft cover - As the name implies, this cover pertains to car burglary or theft. When your car is carnapped, the insurer will pay for the car, based on the amount of cover. So with this insurance even if your auto is stolen, you still have a great chance to replace it. That is if you have you car covered with theft insurance.
*Fire damage - This is a type of cover that is not really very common. But there are instances when the car gets involved in an accident and in that incident, it explodes and burns. The insurer will pay for the car equal to the face amount of the policy.
*Acts of God damage - This is one of the covers that rarely happens. The car is insured because of accidental loss due to unforeseeable fortuitous events. Example of the cover may involve earthquake or flood. The cause is beyond human control.
The premium to be quoted is largely dependent on the type of insurance and the amount of coverage. When you try to buy a policy, you are entitled to seek for the best deal - lowest premium quotation.
by: alona Rudnitsky
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