Understanding The Three Major Types Of Car Insurance Coverage

There are three pieces to insurance. There's coverage for you, coverage for other people and coverage for your car.

Coverage For The People
The coverage for the people is basically liability, for instance if you accidentally crash into damage someone else's property or accidentally injure someone while under the coverage for people type of insurance, the insurance company would take responsibility for such damages.

Coverage For You
The coverage for you is a type of car insurance package which lets your car insurance company take responsibility for damages done to you and your family while driving. In most cases you would have to add you and your family members under this insurance service for you to get access to such insurance claims.

Coverage For Your Car
This basically refers to the part of the insurance that kicks in when your car is being damaged one way or the other. This insurance type comes in two forms. It has an insurance plan for uninsured motorists and another insurance plan for under-insured motorists.

Uninsured Motorist
For example if someone who has no insurance hits your car and maybe disappears, such a scenario is referred to as uninsured motorist and this type of insurance service would help provide insurance for such scenarios.

Under-insured Motorist
This is a type of insurance that kicks in when you get into a car coalition with someone else who as at the time of the collision has insurance for other people which automatically covers the damages done to you, your family and your car. However if the amount of insurance which the other party has insured is not enough to cover the damages done then the under-insured motorist insurance plan would provide you insurance for what is left.

These are the three major types of car insurance you should know. You can go through other articles on the page to gain more knowledge and insight about insurance in general.