Best Car Insurance Coverages

Cars are now a question of status symbol and are the part of esteem need of Maslow’s hierarchy. And nowadays the association of the word “insurance” which is the part of the safety need of Maslow’s hierarchy, with the word car is mandatory. In few places they are mandatory because of the state law and in other places it is mandatory because of the need of safety and belongingness with the family.

The car insurance companies are the service providers, which make a policy which is packed with different type of coverage and sell them as their product. Since this is a tangible type of product the only thing which a person can see or feel is the paper in which the description of the policy and coverage is written. The type of coverage which are available in the market are liability, collision, comprehension, PIP, BIL, PDL, medical, uninsured motorist, underinsured motorist, rental reimbursement etc. what the insurance provider do is make combination of all this coverage and present it to the customers.

Bodily Injury insurance (BIL) and Property damage insurance (PDL) are the part of liability that is if a customer is liable for any damage done to the third party then the insurance company will pay the damages to the property done of the third party and also will pay for the body damage or injury of the third party. In collision coverage the insurance provider will pay for the insurance holder’s car damage if it collides with some other vehicle. In comprehension type it pays for the damages done because of theft or cyclone or terrorist attack or earthquake etc. In medical benefit all the bills are paid regardless of the fault of the insurance holder. Uninsured motorist is a special type of coverage in which if the car insurance holders collide with a third party and the fault is of third party who is not having liability insurance then the damage will be paid. Similarly in underinsured motorist the third party has insufficient liability to pay then under this coverage the amount will be paid by the car insurance holder’s company. Rental reimbursement coverage which pay for a rental car per day if the insurance holder’s car get damaged in any car accident. Sometimes the coverage also includes the storing cost of a damaged vehicle also!

This are the various types of coverage available to serve the customers and after knowing this the actual work begins of choosing the type of coverage.