| Auto Insurance policies can be divided into different | | | | the insured suffers on account of a collision under this |
| categories according to the coverage they provide. | | | | policy. |
| Broadly speaking there are four kinds of policies | | | | Some other additional coverage that an auto insurance |
| known as Collision Insurance, Comprehensive | | | | policy holder can buy are: |
| Coverage Insurance, Uninsured and underinsured | | | | Property Damage Liability and Bodily Injury Liability: |
| Motorist Coverage policies and No Fault Automobile | | | | These two policies protect the insured from any claims |
| Insurance policy. Besides these, there are policies that | | | | made against him for causing damage to property |
| take care of other needs like covering an auto loan, | | | | including vehicle belonging to another person or for |
| paying for towing expenses or paying for the cost of | | | | causing any bodily injury or loss of life to other |
| a rented car while your vehicle is being repaired. | | | | individuals up to the amount mentioned in the policy. |
| The most common insurance policies are: | | | | Auto Lease Protection: is an additional protection that |
| Collision: Any property damage caused to your vehicle | | | | you may add to your collision or comprehensive auto |
| due to an accident caused by any other vehicle or | | | | insurance policy to take care of any gap that exists |
| object is covered under this policy. The claim amount | | | | between your auto loan amount and the cash value of |
| cannot exceed the actual cash value of the vehicle | | | | your vehicle. |
| and is subject to any deductible. | | | | Full Tort and Limited Tort: available only in the state of |
| Comprehensive: Any property damage to your vehicle | | | | Pennsylvania allows the insured to retain unrestricted |
| that is caused by non-collision factors like fire, theft, | | | | rights to bring a lawsuit against a negligent party or |
| vandalism, and even natural disasters like flood, | | | | recover expenses incurred for certain damages. |
| hurricane or earthquake is covered under this policy. | | | | Rental Expense: Known as Extended Transportation |
| Uninsured Motorist Coverage (UM) and underinsured | | | | Expense Coverage, the policy pays for a rental car |
| motorist (UIM) coverage: takes cares of any injury that | | | | while your vehicle is being repaired or replaced. |
| may result to you or to persons insured in your policy | | | | Medical Payments Insurance covers medical expenses |
| from an accident that takes place with another | | | | for injuries sustained in an accident involving any |
| uninsured or underinsured driver or vehicle owner. | | | | vehicle for the insured, his passengers and other |
| Generally only body injuries are covered under this | | | | parties irrespective of whose fault it is. |
| policy. | | | | Towing and Labor: An additional coverage option that |
| No Fault Auto Insurance Policy: Irrespective of who | | | | can pay for all necessary towing and labor costs to |
| caused the accident, the insurance company pays for | | | | tow your damaged vehicle to a work shop or another |
| the medical expenses and for the loss of wages that | | | | location. |