Be Clear about the Different Types of Auto Insurance

Auto Insurance policies can be divided intoa collision under this policy.
different categories according to the coverageSome other additional coverage that an auto
they provide. Broadly speaking there are fourinsurance policy holder can buy are:
kinds of policies known as Collision Insurance,Property Damage Liability and Bodily Injury
Comprehensive Coverage Insurance, UninsuredLiability: These two policies protect the insured
and underinsured Motorist Coverage policies andfrom any claims made against him for causing
No Fault Automobile Insurance policy. Besidesdamage to property including vehicle belonging to
these, there are policies that take care of otheranother person or for causing any bodily injury or
needs like covering an auto loan, paying forloss of life to other individuals up to the amount
towing expenses or paying for the cost of amentioned in the policy.
rented car while your vehicle is being repaired.Auto Lease Protection: is an additional protection
The most common insurance policies are:that you may add to your collision or
Collision:  Any property damage caused to yourcomprehensive auto insurance policy to take care
vehicle due to an accident caused by any otherof any gap that exists between your auto loan
vehicle or object is covered under this policy. Theamount and the cash value of your vehicle.
claim amount cannot exceed the actual cash valueFull Tort and Limited Tort: available only in the
of the vehicle and is subject to any deductible.state of Pennsylvania allows the insured to retain
Comprehensive: Any property damage to yourunrestricted rights to bring a lawsuit against a
vehicle that is caused by non-collision factors likenegligent party or recover expenses incurred for
fire, theft, vandalism, and even natural disasterscertain damages.
like flood, hurricane or earthquake is coveredRental Expense: Known as Extended
under this policy.Transportation Expense Coverage, the policy
Uninsured Motorist Coverage (UM) andpays for a rental car while your vehicle is being
underinsured motorist (UIM) coverage: takesrepaired or replaced.
cares of any injury that may result to you or toMedical Payments Insurance covers medical
persons insured in your policy from an accidentexpenses for injuries sustained in an accident
that takes place with another uninsured orinvolving any vehicle for the insured, his
underinsured driver or vehicle owner. Generallypassengers and other parties irrespective of
only body injuries are covered under this policy.whose fault it is.
No Fault Auto Insurance Policy: Irrespective ofTowing and Labor: An additional coverage option
who caused the accident, the insurance companythat can pay for all necessary towing and labor
pays for the medical expenses and for the losscosts to tow your damaged vehicle to a work
of wages that the insured suffers on account ofshop or another location.