What is covered by a car insurance policy?

This is at the top of the mind for the first time car insurance buyers. Most of them are surprised at the different components present in the policy. They typically never thought how much damage they could cause by driving a car, and the type of injuries they are exposed to. The following sections show the different components that make up the policy and your coverage in each section determines the overall premium.

• Collision : This covers your car when you end up in an collision with another car, a lamp post, a tree or anything out there. It also covers the damages due to potholes. The coverage is also applicable when your car rolls over.
• Comprehensive : Collision covers when you hit another car but what if you are hit by a missile or a deer, this is covered by the comprehensive. The deductible is an important component in this where it defined how much premium is billed. This coverage also provides protection against theft, and natural disasters like earth quakes or hails.
• Liability - Property : this covers the damages caused by you against someone else's property. This is coverage when you hit their car or in some cases when people mow down the neighbors walls or fences.
• Personal Injury Protection :This component pays for the treatment of injuries to the driver and any passengers injured in the accident. They could cover funeral costs and the lost wages and service costs as well.
• Liability - Bodily Injury : This covers the expenses for the person you hit and pays for their injury treatment. This typically is accompanied by legal battles between the insurance companies in some cases on what should be covered by whom.
• Uninsured or Under insured protection: this is one of the necessary evils in the policy, what if you are a victim of a hit and run or by a person with less coverage or when you are a pedestrian.? This component covers these cases.