Six different types of car insurance Coverage to protect against losses

Auto insurance help for protection against damage and loss with best coverage of your car, but most car owners don’t know the right insurance package that fit their needs.

There are different types of car insurance policy offer to customers to insured their car when the uncertainty occur by insurance companies to cover against financial losses if you’re involved in an accident

This article will provide the different type of insurance policy car owners should get to protect against losses when they get involved in accident and theft.

You can also read: List of Banks in Nigeria that offer easy-to-get Auto loans

1. Third party insurance

The automobile insurance known as Third party offers coverage against claims of damages and losses incurred by a driver who is not the insured, it just covers injuries or damage to third parties

This liability insurance purchased by an insured from an insurer for protection against the claims of another (third party).

2. Comprehensive Coverage insurance

The Policyholder has a widest range of motor insurance protection as it covers for damage or loss of the policyholder’s vehicle and includes all the benefits of Third Party Motor Insurance policy.

Comprehensive coverage helps policyholders pay to replace or repair their vehicle if it’s stolen or damaged from fire, vandalism or falling objects in an incident that’s not a collision.

It also covers medical expenses after an accident,Towing fee is covered up to a maximum limit provided your car is towed to a nearest and reasonable place for safekeeping or repair and Cover for Civil Commotion, Risk of Strikes, Flood and Riots but requires payment of additional premium.

This insurance policy doesn’t cover Damage to your car from a collision,Damage to another person’s vehicle from a collision and medical expenses after an accident from your passenger.

Also read: Common Life Insurance Policy Terms, definition and Types

3. Collision insurance

This a coverage that helps insurance policyholders pay to repair or replace their car if it’s damaged in an accident with another vehicle or object.

Read: Things consider before applying for a Car loan

4. Personal injury car coverage insurance policy

Personal injury protection also known as “no-fault insurance, may help pay for medical bills, hospital bills and costs not covered by your health insurance company.

5. Underinsured/Uninsured Motorist Coverage

Uninsured and underinsured motorist coverages financially protect you from irresponsible drivers when the policy limits are not enough to cover the damages or when the driver who has no insurance at all.


6. Liability coverage

The Auto liability insurance help provide protection in two ways. If you cause an accident that injures another person, auto bodily injury liability coverage may help pay for their medical bills. Auto property damage liability coverage also helps pay for repairs to another person’s car if you damage it with your car.

Also read: 6 Different Types of Mortgage Loans you need to understand

Your liability coverage won’t pay to repair your vehicle or for injuries that you sustained.There are separate coverages available for these exposures, including collision coverage, comprehensive coverage, and medical payments coverage as explained above.

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