Auto or car insurance can simply be described as an understanding between a consumer and an insurer relating to the protection or coverage of a car. It safeguards cars from physical loss, theft, and any act of vandals. It is against this backdrop that owners are able to exclude bearing these costs by paying scheduled amounts of money referred to as premiums to an insurance provider. As most if not all costs associated with loss arising from accidents and natural calamities are being absorbed by insurance companies.
Common classes of automobile insurance policies
Various car insurance policies have coverage for distinct losses. Therefore, while some plans limit the effects of an accident that may occur on the property, others also cover one against theft. And policies for motor bikes and cars are also not the same. This is the perfect time to discuss the variety of the car insurance options.
Own damage insurance: Losses suffered by the object of insurance because of normal wear and tear, theft, exposure to weather conditions, fire of a natural origin, riot, vandalism, etc are all compensated by Own Damage Insurance. Those include repair costs and loss of belongings, which are evidently covered under this policy.
Third-party insurance: This insurance protects from losses and harms by another person for which the insured is not at fault other than when the harm is a theft. This or the amount paid periodically for third-party risks is usually below that of other insurance plans.
Collision insurance: Collision insurance is the policies which afford protection in case of collision with objects and with other auto-mobiles.
Comprehensive damage insurance: In its broad scope, this policy includes own damage and third-party damage in its protection. It has a higher premium and, on average, it is required to pay a certain amount, the so called deductible, before the insurance company starts contributing.
