If you are planning for an insurance coverage for your car, you must first know the types of insurances that are available for car. Based on the requirements of your car you have to choose the type of insurance that is needed. These car insurances will cover you and your car in different ways. Some of the types of car insurances are:
Liability insurance
This insurance will cover the damage or injuries made by you through a car accident. This insurance will help you by covering the cost of damage made. This is one of the best way to protect yourself from financial loss. There are two types of liability coverage insurances such as:
- Property damage insurance: If you are the fault at the seen of accident, then this policy pays if any damage has been done to the car. This insurance usually repairs or replaces the damaged part. Damaged property such as vehicles, lamppost, house, etc. are covered in this insurance.
- Bodily injury insurance (BIL): It is also called as bodily injury liability coverage. This insurance protects you when you are cause for the physical injury of the people. It usually covers medical expenses, lost income from time off work, nursing care for long-term, pain and suffering, etc. This won’t pay if any injury has happened to you.
Personal injury protection (PIP)
This insurance will cover you and the passengers that were involved in an accident. It doesn’t matter who is at fault. It is also called as no-fault insurance. This insurance will also pay for the loss of wages. This also helps in a situation when the expenses exceed the health insurance policy. Along with PIP if you have liability coverage then it benefits you a lot.
Collision coverage
Collision coverage will entirely payoff for your car when it is damaged or meets with an accident. It also pays for the repair of the car. If your car is too old then it may not be eligible for the collision coverage.
These are the three major car insurance coverages that will help you and your car when you met with an accident.
