Lastly, your policy contains conditions . These are explanations for everything involved in filing a claim, including getting proof, how long you have to file a claim, and more. It also states the cancellation terms, both for you and for the company. TYPES OF INSURANCE STANDARD INSURANCE There are five main types of coverage: 1. collision 2. comprehensive 3. liability 4. medical payments (including personal injury protection) 5. uninsured motorists Collision insurance covers car repairs after a traffic accident. While this is often considered optional coverage, many car loan and lease agreements list collision insurance as a requirement. Comprehensive insurance is another type of loan lease agreements require. Its coverage can vary but may include natural disasters, fire, vandalism, theft, falling objects, and damage done if you hit an animal. Liability is the most common coverage requirement. It pays for any accidents you cause and only covers the other party. Liability includes bodily injury and property damage coverages. Bodily injury coverage sometimes has two limits. One is per person and the other is if multiple people are injured. For example, a policy may include a $15,000 bodily injury limit per person and a $25,000 total bodily injury limit (for everyone hurt). There’s a separate limit on property damage. However, it is also
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