What Are The Coverages Included on a Car Insurance Policy? Different companies offer a variety of coverage to tide you through accidents and subsequent damage, injury and lawsuits. Depending on your specific need you can buy a car insurance best suited to your requirement. Listed below are a few of the coverage that are commonly provided by most of the companies. Liability coverage: - There are two types of coverage provided under this: Bodily injury liability - Death or injury to other people for which you are responsible is covered. The injured party may file a lawsuit against you. In such a case, legal expenses for your defense are also covered. Property damage liability - Damage to other people's property is covered. Property could range from their vehicle to their house of fence damaged by your car. Your legal expenses are also covered if the other party files a lawsuit. Physical damage: - Under this damage to your vehicle is covered. There are two types of coverage: Collision coverage - It covers damage due to collision. The collision may be with another vehicle or object. The insurance company pays to fix your car minus the deductibles. Deductibles are the amount paid by you for repairs before the insurance company pays. Comprehensive coverage - This covers losses occurring due to incidents other than collision for your vehicle and in some limited cases to other vehicles you are driving. Such incidents could be flood, theft, riots, fire or vandalism. It covers the expenses incurred to fix your vehicle after deducting the deductibles. In the above cases, the higher the deductibles, the lower the premium. Uninsured and underinsured motorist coverage: - If death or injury is caused to you or passengers in your car, by a driver who has no insurance, medical expenses are covered by this. If the same happens in the case of a faulty driver who is underinsured, the difference in the actual expense and the other driver's insurance cover will be covered by this policy. A separate cover under this also provides for damage to your car by an uninsured driver. Medical payment coverage: - This provides cover to you and your passengers against injuries sustained in an accident whether in your own car or someone else's car. If as a pedestrian also, a vehicle injures you, coverage is provided. Work loss coverage: - This coverage provides for loss of income due to an accident to you or drivers covered by your policy. Rental car reimbursement: - Expenses incurred to rent a car if your car is totaled or under repair due to an accident are covered. Towing and labor: - Expenses to tow your vehicle are covered if you have purchased comprehensive or collision coverage. Accidental death benefit: - Payment is made if bodily injury due to accident is the cause of death of you or your family member. Custom parts and equipment: - Payment is made if you lose custom parts and equipment not installed by the original manufacturer.
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