What is car insurance cover? Auto insurance cover is a legal contract between you and your car insurance company. This contract ensures protection to you against the financial damages involved in a car accident. According to this contract, you pay a fee prescribed by your car insurance company regularly and in an event of a car accident, your car insurance company will pay the for the financial loss due to the accident in accordance with the cover that you have opted for in your insurance policy.
Some of the basic car insurance covers are:
Comprehensive cover – which pays to repair your car irrespective of the cause (theft, fire, flood, storm) for the damage to the car
Collision cover – which pays to repair your car in an event of car accident
Personal Injury Protection cover – which pays to cover your medical expenses due to an accident
Rental cover – which pays for a rental car if your car has been stolen or is under repair. If you rent a limousine, you don’t need insurance — the limo company will get Limo Insurance!
Property damage cover – which pays for the damage caused to your car or the other person’s car due to an accident
Bodily Injury Liability Cover – which pays for medical expenses of the third party involved in an accident
Breakdown cover – which pays for damages due to the breakdown of your car
Uninsured cover – pays for your injuries due to an accident where the other party is uninsured or under insured
The cost of the car insurance policy depends on the covers opted for. There are mandatory covers and optional covers. Depending on the legal requirements of the state and your specific needs, select the covers in your policy and be safe on the roads.
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