Know the Various Types of Covers Offered By An Auto Insurance Company

An auto insurance company insures all or either vehicle, driver, passenger and the third party, in case of an accident involving your vehicle. It is mandatory to have your vehicle insured before you drive around in it, in many countries around the world. The extent of cover and the items covered depends on the level of indemnity taken by you.

Types Of Insurance Policies

Each auto insurance company has its own set of policies that clearly define each kind of cover. These policies visibly state the conditions to be fulfilled for coverage of a particular item. For instance, you can take a policy that separately insures the vehicle for accident and other factors like theft and fire.

The various categories of insurance covers are:

Some Uncommon Insurance Covers

Some other not so common types of insurance covers include:

Collective Limit & Split Limit

All these items can be insured as a collective single limit or as a split or divided limit. Collective single limit takes care of all insured items under a single coverage. Split limit on the other hand divides the coverage amount into different heads for covering different items like vehicle damage cover and physical harm indemnity. Physical harm indemnity is further fixed to a maximum limit for each person, per accident.

Therefore, you can choose from the various different types of policies offered by your auto insurance company. Depending on individual circumstances, usage of vehicle and the amount that you are willing to pay for indemnity, you can take a cover that suits you.