What are the two types of vehicle 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 five types of vehicle insurance?

What is one of the five types of vehicle insurance?

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.

What are the 6 types of auto insurance?

Six common car insurance coverage options are: auto liability coverage, uninsured and underinsured motorist coverage, comprehensive coverage, collision coverage, medical payments coverage and personal injury protection. Depending on where you live, some of these coverages are mandatory and some are optional.

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 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 is basic car insurance?

Basic car insurance is a policy that only includes liability coverage. It helps cover the damage you may cause to other people and their property. That can include medical bills, repair or replacement of property and legal fallout. Almost every state has minimum basic auto insurance limits for their drivers.

What are the levels of car insurance?

The five basic types are liability coverage, collision coverage, comprehensive coverage, uninsured/underinsured motorist, and medical payments coverage.

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 are the four main types of insurance?

There are, however, four types of insurance that most financial experts recommend we all have: life, health, auto, and long-term disability.

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.

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 full coverage car insurance?

full coverage insurance. ... Many lenders, agents, and car dealerships describe "full coverage" auto insurance as liability plus comprehensive and collision. Your lender may use the term "full coverage," but that simply means they're requiring you to carry comprehensive and collision, plus anything your state mandates.

What are liability coverages?

Liability coverage pays for property damage and/or injuries to another person caused by an accident in which you're at fault. This coverage is required by most states to legally drive your vehicle. Liability coverage is broken down into 2 parts: property damage and bodily injury.

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 the lowest level of car insurance?

Liability insurance is usually the cheapest level of car insurance because it only covers the costs of injuries and damages for the other vehicle if you are at fault in an accident. Cheap liability insurance is best for drivers with a paid-off vehicle who have enough savings to cover their medical and other expenses.

What is difference between collision and comprehensive?

Collision coverage helps pay to repair your car if it's damaged in a collision with another vehicle or object, such as a fence. ... Comprehensive is a separate coverage from collision. It helps cover different types of losses that are usually not the result of driving the vehicle, such as theft, hail or fallen trees.

What is collision and comprehensive insurance?

Quick take: What's the difference between comprehensive and collision? Comprehensive provides coverage for events outside your control that are not caused by a collision, like weather, vandalism and theft. Collision coverage is for damage resulting from an accident with another vehicle or object.

What is the difference between full coverage and comprehensive?

Full coverage comprises two additional types of cover: Collision and Comprehensive insurance. Collision insurance is generally for damage from situations when you are driving. ... Comprehensive insurance covers damage to the vehicle outside of driving situations, so for example, weather damage, fire or theft.

What does od and TP stands in motor insurance?

A motor insurance policy consists of two parts - own damage (OD) cover and third party (TP) liability cover.