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To suit the varied needs of different car owners, different types of car insurance policies are available. In general car insurance policies can be divided into two distinct categories - one is the third party liability and the second is first party insurance. In the jargon of car insurance the third party is that person whose property or health has suffered damage due to an accident by the owner of the policy. In case of third party liability car insurance, the insurance usually covers the amount that the owner of the policy owes to the person who has suffered the losses as a result of the accident. In contrary to this the first party insurance covers the losses pertaining to the owner of the policy and the passengers of his car.
Alternatively car insurance can also be divided into four different categories according to the coverage that they provide. In general you will find four types of car insurance - Collision Insurance, Comprehensive Coverage Insurance, Uninsured and underinsured Motorist Coverage policies and No fault Automobile Insurance policy. You will also find car insurance that will include car loan, towing expenses, rents for hiring a car etc.
The Collusion car insurance policy will cover all cost of repairing your car due to an accident which is the fault of the other person and not yours. In this case the claim amount is equal to the actual cash value of your car and not more. Also the claim amount is vulnerable to any deductibles.
Comprehensive car insurance policy includes all damages to your car that are caused not due to accidents but other factors like fire, theft, flood, hurricane, earthquake and such similar factors.
In case you are opting for Uninsured Motorist Coverage or underinsured motorist coverage, you should keep in mind that they will cover only bodily wounds.
The advantage of No Fault Auto Insurance policy is that no matter who is responsible for the accident the insurance company promises to pay for the medical expenses as well as loss of salaries.
There are also some other types of car insurance which are usually provided by most of the insurance companies. Common among them is Property Damage Liability and Bodily Injury Liability. The aim of these two policies is to save the owner of the policy from any kinds of claim that may be made against him for causing any kind of property damage.
Then there is Auto Lease Protection which is actually an extra protection that can be adopted by you to cover that amount which your existing policy may fail to do.
There are various other types of car insurance policy for you to choose from. It is advisable that you first check out the details of each type of policy carefully before deciding on the type of car insurance best suited for you.
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