Cover greater risk against small premium

Auto Insurance, also known as vehicle insurance, car insurance or motor insurance is insurance purchased for automobiles like cars, trucks, motorbikes and all other vehicles. The protection is given against losses incurred on the event of the damage of the vehicle due to accident, or other misfortune event.

Any type of car insurance covers the insurance party, vehicle and third parties. The protection against these losses is given against the premium paid by the party to insurer. The premium is derived from calculation based on statistical data, which depend on many factors like car characteristics, the risk covered, the driver profile including age, past history in driving, occupation, usual habits as smoking, drinking etc, usage conditions like predicted distance to be covered, place of driving, purpose of the vehicle i.e. commercial or personal etc.

Auto Insurance covers the following damages:

Bodily injury insurance: It applies to all damages caused to others by the accident and includes medical bills and lost wages.

Property damage liability: It applies to the damage to property by accident and includes its replacement and repair.

Medical payment: It covers all the damage to the insured party or the driver and other passengers on the car insured which cause the accident. It includes medical bills and wage loss due to the accident.

Uninsured motorist coverage: In case accident is caused by uninsured motorist and without any fault of insured party, uninsured motorist coverage is the term that is used. The medical bills of insured party are reimbursed or paid in this case.

Collision Coverage: It covers the repair of damage of car in event of accident. When the repair cost exceed the value of car by a certain big percentage, car is considered as ‘totaled’ and car will pay the value of the car in exchange of car.

Comprehensive Coverage: It includes damage to the car for the reasons other than accident like theft, natural disaster, vandalism, etc.

Other Coverage: There are other losses which can be covered by insurance company like rental reimbursements in case the rental car is lost or damaged.

Depending upon the requirements of insured party, the coverage can be taken. Auto Insurance is available in market with many players offering it and customization can be done to the extent on the wish of the insured party

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