Six common car insurance coverage options are: auto liability coverage, uninsured and underinsured motorist coverage, comprehensive coverage, collision coverage, medical payments coverage and personal injury protection . Depending on where you live, some of these coverages are mandatory and some are optional.
What are 4 main types of automotive coverage insurance?
While different states mandate different types of insurance and there are several additional options (such as gap insurance) available, most basic auto policies consist of: bodily injury liability, personal injury protection, property damage liability, collision, comprehensive and uninsured/underinsured motorist .
Which of the following is not considered one of the four basic type of auto insurance?
Legal Responsibility is not considered as the component of auto insurance because auto insurance only consists of collision, bodily injury, medical payment or personal injury protection and property damage liability. Therefore option (d) is correct.
What are the 5 basic types of auto insurance?
- Liability Insurance.
- Collision Coverage.
- Comprehensive Coverage.
- Personal Injury Protection.
- Uninsured /Underinsured Motorist Protection.
What is the most basic type of automobile insurance?
- Bodily Injury Liability Coverage. ...
- Property Damage Liability Coverage. ...
- Medical Payments or Personal Injury Protection (PIP) Coverage. ...
- Comprehensive Coverage. ...
- Collision Coverage. ...
- Uninsured/Underinsured Motorist Coverage.
What are the 4 types of insurance?
- Home Insurance. As the home is a valuable possession, it is important to secure your home with a proper home insurance policy. ...
- Motor Insurance. Motor insurance provides coverage for your vehicle against damage, accidents, vandalism, theft, etc. ...
- Travel Insurance. ...
- Health Insurance.
What are the insurance requirements?
Insurance Requirements — the part of a commercial contract in which the types and minimum amounts of insurance the parties agree to provide in connection with their performance of the contract are specified.
What three types of auto insurance coverage are the most important to have?
The most important coverage has to be your state’s minimum liability and property damage coverage . More than anything else, you need to maintain car insurance to keep yourself legal to drive.
What are the 3 types of car insurance?
- Liability coverage. Protects you if you cause damage to others and/or their stuff. ...
- Collision coverage. Covers your car if you hit another car, person or non-moving object (like those darn ornamental rocks cousin Todd has at the end of his driveway). # ...
- Comprehensive coverage.
An insurance premium is the amount of money an individual or business pays for an insurance policy. Insurance premiums are paid for policies that cover healthcare, auto, home, and life insurance. Once earned, the premium is income for the insurance company.
What are the two major types of car insurance?
- Liability coverage. ...
- Collision insurance. ...
- Comprehensive insurance. ...
- Uninsured motorist insurance. ...
- Underinsured motorist insurance. ...
- Medical payments coverage. ...
- Personal injury protection insurance. ...
- Gap insurance.
What insurance do I need for a car?
To legally drive in Alberta, everyone must have liability insurance to cover any at-fault damage or injuries to others. This does not cover your own vehicle. While the minimum required coverage is $200,000, we recommend having at least $2,000,000.
Which type of vehicle is the safest choice for new drivers?
One of the Top Safety Picks by the Insurance Institute for Highway Safety (IIHS) is the Toyota Prius . With its four braking systems, vehicle stability control, and brake assist, it’s easy to see why so many of these cars are on the road. To make it even more attractive, the Prius is eco-friendly and fuel-effiecient.
What is basic car insurance called?
Personal Liability Insurance
The foundation of all car insurance policies is personal liability coverage. That is what protects you if you injure someone in a car accident or damage their car or property. The minimum coverage required is determined by each state.
Which insurance company has the highest customer satisfaction?
| Rank COMPANY J.D. POWER CLAIMS SATISFACTION SCORE, 2020 | 1 New Jersey Manufacturers Insurance Co. 909 | 2 Amica Mutual 907 | 3 Auto-Owners Insurance Group 890 | 4 USAA 890 |
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Does insurance cover if you drive someone else’s car?
Your Comprehensive Car Insurance or Third Party Car Insurance policy is only attached to your vehicle. It doesn’t follow you when you drive other people’s cars. For someone else to be covered while driving your vehicle, they need to be on your policy as a listed driver .
