Car Insurance - Care for your car

Although everyone that drives has to have some form of auto insurance by law, sometimes, they are ignorant about even the basics of their policies. It is crucial to at least grasp the fundamentals of car insurance policies so as to benefit yourself. The typical US auto insurance contract consists of 5 parts. Different insurers may have different section titles but basically they mean the same thing.

Declarations: This part of the policy contains the personal facts for drivers in your household such as name and address, make and model of your vehicle(s), vehicle identification number(s), policy number and policy duration. It also contains the basic type of coverage that has been purchased by you as well as the motor insurance policy limits and deductibles.

Coverage Parts/Insuring Agreement: This particular section on the whole states what the insurance company promises to provide in return for your payment which is based on the coverages and coverage limits selected by you.

Exclusions: This section states the areas left out by the automobile insurance policy. In other words, it highlights the policy's limitations. Exclusion along with the previous section ensures that you are aware of exactly what is covered by the policy.

Conditions: This section lists the legal responsibilities of the insured and the insurer that includes premium payment obligations, procedures for resolving disagreements, etc. It is illegal to drive without car insurance in UK as in other countries also. Automobile insurance is known as motor insurance in UK. Hence, it is important that one understands the details of the procedures in car insurance. Different types of auto insurance packages are available. Some of them are as follows:

a) Liability Coverage (LIABILTY) Bodily Injury Liability (BI): Such a policy recompenses other people harmed by you in an accident for which you are responsible and also provides for a legal defense if the other party files a lawsuit against you. This liability covers only injury to people and not your vehicle.

Property Damage Liability (PD): This provides coverage if other's property (car, fence, house etc) is damaged by your car and also provides legal defense in case the other party files a lawsuit against you.

b) Physical Damage Coverage (COMP and COLL) Comprehensive Coverage (Other Than Collision or OTC):Such a policy covers your vehicle, and sometimes other vehicles you may be driving for losses like fire, floods, robbery etc. In other words, this policy covers everything other than accidents. This policy is generally not compulsory.

Collision or Accident Coverage:
This type of insurance provides coverage for accidents i.e. if you hit another car or another car hits you. Again this insurance is not compulsory for the vehicle owners.
These are the major types of car insurance. Other categories in car insurance are 'Uninsured motorist property damage', 'Uninsured Property Damage', 'Personal Injury Protection Coverage', 'Medical Payments', 'GAP Insurance', 'Accidental Medical Protection Plan', 'Rental Car Reimbursement', 'Accidental Death Benefit' etc.
Another type of life insurance is classic car insurance. The definition of a 'classic' varies according to the insurer. In fact many large motor insurance companies do not offer special insurance products at all and provide the same cover as that for modern vehicles.

A classic car insurance policy can be used for the following three categories.

• Classics Cars: Pre 1973 or at least fifteen years old.
• Vintage Cars: Manufactured between 1903 and 1933.
• Veteran Cars: Manufactured before 1903.