Definition:
Auto insurance is a type of insurance that protects road users and property against losses and injuries that may arise from road usage. Auto insurance will in ways come in handy when the unforeseen event happen when using the road.
In this article we are going to explore 18 different types of auto insurance that are offered by different companies in the market. This types of auto insurance are:
1. Auto Liability insurance
The Auto Liability Insurance is a cover that protects car owner against claim from third party or property damage. Example of this claim maybe damage caused to another person car.
2. Collision insurance
The collision Insurance is an auto insurance policy will pay car owner for damages sustained by their auto mobile due to collision from objects or other vehicles.
3. Comprehensive insurance
Also dumped as "total insurance", Comprehensive Insurance is a auto insurance that will cover the auto owner, the auto mobile and third parties against wide range of incidents.
4. Personal injury protection (PIP)
PIP is a type of auto insurance that will cover you and your passenger(second person). Also known as no-fault insurance, this insurance policy will cover you against medical bills claims, lost income or wages, rehabilitative cost or funeral costs that will arise from an auto accident.
5. Uninsured/underinsured motorist coverage
This insurance policy will cover you against motorist who are at fault and are either Uninsured or underinsured. The Uninsured motorist insurance policy will protect you from accident caused by a driver who is at fault and doesn't have liability cover. underinsured motorist cover will cover you against accident caused by driver at fault whose insurance policy limits are too low to carter for third party injuries.
6. Medical payments coverage
Also known as Med Pay is a top-up auto insurance cover that will provide direct medical expenses to the first person(driver) and second person(passenger(s)) that may arise due to accident.
7. Car rental reimbursement
The auto car rental reimbursement policy is a policy that will cover the cost incurred by policy holder while their car is being repaired after an accident. This cost will generally be associated with cost from rental car or other transportation costs.
8. Roadside assistance
The roadside assistance cover is policy that will cover auto owner against emergency assistance costs. This cost maybe towing, battery jumpstart and re-charging, mechanical repair or gas delivery costs.
9. Towing and labor coverage
The towing and labor coverage is a policy that will cover you against costs that will arise from towing services and human labor that will come as a result of auto breakdown.
10. GAP insurance
Also known as Guaranteed auto protection is a policy that will pay auto owner against remainder balance from auto loan incase of theft or total loss of the depreciated auto value. As the name sounds its a gab breaching cover.
11. Custom parts and equipment coverage (CPE)
The CPE is a policy that will cover your auto parts and equipment installed post original auto manufacturer. This part maybe for enhanced performance or change appearance to meet auto owner needs and requirements.
12. Classic car insurance
The classic car insurance policy is an auto insurance policy that will cover antique, modern or infrequently used high-end cars. This insurance policy is usually cheaper or lower premiums than standard policy since insurers consider it to have less frequency of risk occurrence.
13. Non-owner car insurance
The Non-owner car insurance policy covers frequent drivers who don't own a car. This policy will cover such driver against liability or property damage that may arise when using a rented or borrowed auto or vehicle.
14. High-risk car insurance
The High-risk car insurance is a type of auto insurance that covers auto drivers that are considered to have a higher or more liability to the insurer. This may be from their type of credit history, progressive driving record or age and type of vehicle they drive.
15. International driving coverage
The International driving coverage is a type of auto insurance that cover policy owner while driving abroad from liability claims, property or physical damages or loss.
16. rideshare driver insurance
The rideshare driver insurance policy is a type of auto insurance that will cover the driver working for a ride-sharing company. This will cover the property damage for other people and physical harm to the driver and the passenger based on the policy limits.
17. Teen driver insurance
The teen driver insurance policy is a type of auto insurance that will cover teens and young drivers when they are driving. This policy enable teens to drive auto mobile while ensuring they are covered against liability, physical injury or property damage that may be realized while driving.
18. Commercial auto insurance
The commercial auto insurance policy is a type of auto insurance that will protect company, business or firm vehicle against liabilities, property damage or loss that will arise when the vehicle is involved in any of this occasions. There are different types of Commercial auto insurance offered in the market.
Its best to purchase an auto insurance for you do not know if things will go as planned. To be on a better side or "safe side" it is best to ensure you have a policy before driving or handling an auto mobile. This in most countries it is illegal and unlawful to drive a vehicle without an insurance policy. The most will require auto owner to purchase one or more before using the roads.
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