According to Aussie Agencies in Knoxville, IA, there are six major types of auto insurance, and they have been explained briefly here.
1. Personal Injury Protection
As its name implies, this type of auto insurance pays your medical bills after an accident. Some of them may also cover the expenses caused by injuries. For instance, your injuries may prevent you from being able to work for a few days, weeks, or months. This coverage may compensate you for the loss of income.
2. Medical Payment Coverage
If your family members, friends, or anybody gets injured in an accident, in the insured vehicle, this policy covers their medical payments, whether they were behind the wheel or they were passengers in the vehicle. This type of insurance also covers medical expenses like the cost of visiting the hospital, surgery, or other bills related to the injuries.
3. Collision Coverage
If you hit another car or an object, this insurance policy will fix the car or the object for you. It is concerned about the third party’s property. However, it must be established that you’re at fault before you make claims for this coverage.
4. Comprehensive Coverage
In the case of vandalism, hail, fire, or theft, this type of insurance will compensate you for the damages in your car. However, it has a deductible. That is the amount you must pay from your pocket before your insurance company completes the cost or refunds you for the covered part of the cost.
5. Under-insured or Uninsured Motorist Coverage
Not all the motorists on the road are fully insured. In fact, some of them are not insured at all. If you get hit by anyone without insurance, this type of policy may reimburse you for your medical bills and more.
6. Liability Coverage
This is mandatory in most states. It pays a third party’s medical bill if you cause an accident. Also, it pays for the fixing of a third party’s property if you run into it with your car.
For more information on this, you can contact Aussie Agencies in Knoxville, IA.