Classifications Of Car Insurance
Introduction
Car insurance is a financial service that protects the policy holder against any financial losses resulting from a car accident or damage, medical costs, and property damage. Car insurance companies provide premium rates to customers in return for promises of these benefits.
Car insurance companies face four main types of liability:
1. Bodily injury liability (BI)
This is the amount of money that an insurance company will pay to a third party for personal injuries and deaths caused by the driver.
2. Property damage liability (PD)
This is the amount of money an insurance company will pay out to a third party for damage to property. This could be cars, houses, boats or personal items that have been damaged in the crash. If you are injured and the accident causes your disability then there is no limit on how much you can claim for compensation from the other party responsible for causing it.
3. Comprehensive general coverage (CGL)
This is a type of car insurance that covers many different types of events and is commonly described as ‘all-risk’ insurance.
4. Personal Injury Protection (PIP)
This is a type of car insurance that protects the insured against personal injury and medical expenses in the event that they are involved in an accident with another vehicle, pedestrian or animal. The amount paid out by the car insurance company will vary depending on whether you were driving or not at the time of the accident as well as a wide range of other factors.
5. Underinsured motorist bodily injury
This is the amount of money an insurance company pays to the third-party which suffered injuries or death as a result of being involved in an accident with a motorist that has inadequate car insurance coverage for the losses suffered. This coverage is most often purchased to protect the insured against substantial out-of-pocket costs if they are involved in an accident with an underinsured driver.
Introduction Car insurance is a financial service that protects the policy holder against any financial losses resulting from a car accident or damage, medical costs, and property damage. Car insurance companies provide premium rates to customers in return for promises of these benefits. Car insurance companies face four main types of liability: 1. Bodily injury…