There are various types of car insurance policies available. Six most common car insurance policy options are: collision policy, comprehensive policy, full coverage policy, liability coverage and uninsured motorist policy. Each type of insurance policy has its own set of benefits and limitations. Insurance providers offer insurance policies at affordable prices. However, there are several factors that affect the price of an insurance policy such as your age, gender, driving history, credit history, type of car and other details.

Collision insurance is one of the most common types of motorist insurance. It requires drivers to fix damages to a car after an accident or collision. This type of policy requires the driver to pay for all damages to the car caused by an accident, regardless of who is at fault in the accident. Some types of collision motorist insurance require drivers to pay a deductible. In this case, the deductible acts as an investment that reduces the cost of premiums. Premiums are based on how much a driver pays out of pocket after an accident or collision.

Comprehensive insurance policy provides coverage for medical expenses and losses due to fire, theft and damage due to vandalism. It requires the insured to repair or replace a vehicle, including parts, when it is damaged by fire or theft. It also requires the insured to pay for the costs of injuries to another person or damage to property caused by the insured when you are involved in an accident. Full coverage insurance policy does not only cover costs caused by accidents; it also covers costs that occur from other causes such as weather, vandalism and theft.

Bodily injury liability protects you from lawsuits that arise from accidents wherein you cause bodily injury to another person. Usually, the latter category includes cases involving auto accidents, pedestrian mishaps, bicycle mishaps and other incidents involving dangerous sports. Bodily injury liability coverage comes in two forms: physical and liability. This type of insurance coverage requires the insured to pay for the medical expenses and damages incurred by the opposing party when you get involved in a vehicular accident. In addition, you need to pay for the legal costs incurred in case a lawsuit is filed against you.

Collision coverage offers you protection in the event you cause an accident in which you or one of your passengers sustains a physical injury. Collision coverage also provides compensation for damages to the other vehicle and medical payments that you may have to pay following the accident. Generally, your vehicle is covered in this insurance. Collision coverage may help pay for the repair or replacement of your vehicle. However, you need to check with the insurance provider whether or not your vehicle is covered in the collision coverage.

Another type of policy is full coverage insurance. This is the most common types of policies available in the market. Full coverage insurance usually offers a vehicle and all the personal belongings inside the car protection. These types of insurance may also include collision coverage. Some of the common types of coverage provided by full coverage insurance are medical payments, payment for damages to another person’s property, and liability coverage. Liability coverage ensures that you are financially protected from claims that are filed against you.

Bodily injury is the third type of policy in car insurance coverage. Bodily injury can protect you in situations where you get hurt in an accident. Commonly, bodily injury liability coverage provides protection for you if you get sued after being injured in an automobile accident. However, bodily injury liability coverage does not provide coverage for your car or the property of others. For this purpose, there is another common type of policy known as property damage liability coverage.

When it comes to comparing car insurance policies, it is essential that you have knowledge about the different types of policies offered by insurance companies. Because there are different types of coverage available, you need to have a clear idea on the kind of coverage that you require for your vehicles. The best way to do so is to do your own research online. Compare the different types of coverage that are offered by different companies and purchase a policy that suits your requirements.