What are the two types of car insurance?

• Liability coverage. Protects you if you cause damage to others and/or their stuff. ...
• Collision coverage. Covers your car if you hit another car, person or non-moving object (like those darn ornamental rocks cousin Todd has at the end of his driveway). # ...
• Comprehensive coverage.

What are the 5 basic types of auto insurance?

What is two way insurance?

“Two way” coverage provides greater protection as it covers both damage you may cause to others and damage to your own vehicle. This type of insurance contract covers your vehicle in the event of a collision or rollover, as well as for other risks like theft, vandalism, hail or fire.

What are the 3 types of car insurance in Ontario?

In Ontario, the types of auto insurance you need to have by law are: Liability Coverage, Direct Compensation, Uninsured Automobile Coverage, and Accident Benefit Coverage. It's the bare minimum to protect you and your loved ones.

How many types of motor insurance are there?

Type of vehicle - Motor insurance policies can be classified into two types based on the vehicle for which it is purchased: - This coverage offers insurance protection for all types of cars and SUVs.

What is standard car insurance coverage?

Standard auto insurance is the basic or lowest level of coverage available from an insurance provider. ... This insurance covers the expenses of only the other driver or property owner who received damage due to the error of the insured driver. Auto liability insurance will not cover the policyholder driver.

What is a comprehensive insurance?

Comprehensive coverage helps cover the cost of damages to your vehicle when you're involved in an accident that's not caused by a collision. Comprehensive coverage covers losses like theft, vandalism, hail, and hitting an animal. ... Comprehensive coverage is an optional coverage you can carry to help protect your vehicle.

What three types of auto insurance coverage are the most important to have?

Your coverage limit is the maximum amount your policy will pay for each type of coverage. If you go over your policy's limits, you're responsible for any remaining costs. Now, there are a bunch of different types of car insurance. The most important ones are liability, comprehensive and collision coverage.

How do I know my insurance type?

Visit the website of the Insurance Information Bureau, which is framed by the Insurance Regulatory and Development Authority of India (IRDAI), and enter the registration number of your car to check the details of your car insurance cover.

Which type of insurance is mandatory?

Mandatory General Insurance a User Should Have

The general insurance cover that is mandatory is third-party liability car insurance. This is the minimum coverage that a vehicle should have before they can ply on Indian roads.

What is liability insurance Ontario?

Liability insurance is mandatory coverage for an automobile policy. It covers any damages to property or another person due to an auto accident. The minimum coverage for liability coverage is $200000 in Ontario but you may increase your limit. ... The insured can claim medical costs too for the other passengers.

What type of insurance is required in Ontario to register a vehicle?

You need to have insurance for your vehicle before you register as the owner. You need to buy insurance from a private insurance company. All vehicles must be insured for third-party liability for at least $200,000. This covers you in the event that you injure or kill someone or damage someone's property while driving.

What is the difference between all perils and collision?

All perils coverage also covers loss or damage in the event your car is stolen or if it's damaged by an additional driver or someone in your household. ... Coverage - Collision: Optional coverage for your car that takes care of the cost of repair if it's hit and/or damaged by a collision or upset with another object.

What is fire and theft car insurance?

Comprehensive car insurance, sometimes referred to as parked car insurance, or fire and theft car insurance protects your car while it's parked. It ensures your vehicle has coverage if a tree falls on it, falls victim to vandalism, or is stolen.

What is collision or upset coverage?

Collision or Upset Coverage:

This coverage pays for losses caused when an insured vehicle is involved in a collision with another object, including another vehicle, or rolls over.

What do the three insurance numbers mean?

Reading auto insurance numbers is easy, the numbers 25/50/10 define the insurance coverage limits. The first number refers to the bodily injury for one person, the second is for bodily injury liability for all persons and the third is for property liability damage. Many states mandate these three types of coverages.

What is the most important type of car insurance you should buy?

The most important coverage has to be your state's minimum liability and property damage coverage. ... Liability and property damage coverage is there to protect the other drivers on the road from the damage you cause. Your car insurance policy probably lists liability as bodily injury 20/40 as an example.

What is third party insurance?

Third-party insurance, which is also sometimes referred to as 'act-only' insurance is a statutory requirement for all vehicle owners as per the Motor Vehicle Act. It is a type of insurance cover where the insurer offers protection against damage to the third-party vehicle, personal property and physical injury.

What is IDV in car insurance?

What is Insured Declared Value (IDV)? The term 'IDV' refers to the maximum claim your insurer will pay if your vehicle is damaged beyond repair or is stolen. Suppose the market value of your car is Rs. 8 lakh when you buy the policy. That means the insurer will disburse a maximum amount of Rs.

How do I know if my insurance is third party or comprehensive?

One major difference between third-party insurance and comprehensive insurance is the range of protection offered to you and your vehicle. While a comprehensive plan provides multiple protection covers for you and your vehicle, a third-party cover is limited to offering protection against the claims of a third party.

How do I know if my insurance is comprehensive or third party?

The main difference between third-party and comprehensive insurance is the kind of coverage it offers. While a Third-Party insurance only covers you against third-party damages and losses, a comprehensive car insurance will cover for your own damages as well.