to come up with $40,000 to pay for the rest—$3000 for the motorcycle and $33,000 for medical expenses. So not only do you need the right kind of insurance, but you also need to make sure your limits are high enough. What kind of insurance is there that would cover these items and more? Read on.
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 or lease agreement required. 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.
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