What Are The Basic Parts Of An Automobile Policy?

While different states mandate different types of insurance and there are several additional options (such as gap insurance) available, most basic auto policies consist of: bodily injury liability, personal injury protection, property damage liability, collision, comprehensive and uninsured/underinsured motorist

What are the 3 parts of an auto policy?

Liability. Most auto insurance policies contain three major parts: liability insurance for bodily injury, liability insurance for property damage and uninsured/under-insured motorists coverage.

What are the 5 basic parts of auto insurance?

  • Liability Insurance.
  • collision coverage.
  • Comprehensive Coverage.
  • Personal Injury Protection.
  • Uninsured /Underinsured Motorist Protection.

What are the parts of a personal auto policy?

The PAP is divided into the following six parts: liability coverage, medical payments coverage, uninsured motorist coverage, physical damage coverage, duties after an accident or loss, and general provisions Below is an explanation of each part. This is the only portion of auto insurance that is mandatory.

What is the most important part of a personal auto policy?

The most important coverage has to be your state’s minimum liability and property damage coverage More than anything else, you need to maintain car insurance to keep yourself legal to drive. You risk losing your driver’s license and fines driving without it.

What are 4 main types of automobile coverage insurance?

Six common car insurance coverage options are: auto liability coverage, uninsured and underinsured motorist coverage, comprehensive coverage, collision coverage, medical payments coverage and personal injury protection.

What is an automobile insurance policy?

Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy.

How many components are there in an insurance policy?

Insurance Policy Components There are three components of any type of insurance (premium, policy limit, and deductible) that are crucial.

What is an ISO personal auto policy?

(ISO), for insuring private-passenger-type autos owned by individuals The policy may be structured to provide a combination of liability, personal injury protection (PIP), medical payments, uninsured and underinsured motorists (UM/UIM), and physical damage coverages.

What are the two main categories of automobile insurance coverage?

The two main types of car insurance policies are liability-only and full coverage While liability-only policies just have bodily injury and property damage liability insurance, full coverage includes comprehensive and collision insurance in addition to state-minimum coverage.

Which of the following is a feature of the personal automobile policy PAP )?

The personal auto policy (PAP) is a standardized design for auto insurance. These policies offer coverage for liability, medical payments, damage to the vehicle and damage from uninsured/underinsured motorists.

What are the 8 types of coverage available for an automobile?

  • Liability-Only Coverage.
  • Collision Coverage.
  • Property Damage Liability.
  • Bodily Injury Liability.
  • Comprehensive Coverage.
  • Uninsured/Underinsured Motorist Coverage.
  • Medical Payments Coverage.
  • Personal Injury Protection.

What are the 7 different types of auto insurance you can purchase?

  • Liability Insurance
  • Collision Insurance
  • Comprehensive Insurance
  • Uninsured Motorist Protection
  • Medical / Personal-Injury Protection
  • No-Fault Insurance
  • Gap Insurance.

What are the types of motor insurance policies?

  • Car Insurance.
  • Comprehensive Car Insurance.
  • Own Damage Car Insurance.
  • Third Party Car Insurance.
  • Two Wheeler Insurance.
  • Comprehensive Two Wheeler Insurance.
  • Own Damage Two Wheeler Insurance.
  • Commercial Vehicle Insurance.

What are the parts of a policy?

Every insurance policy has five parts: declarations, insuring agreements, definitions, exclusions and conditions Many policies contain a sixth part: endorsements.

What are the 4 parts of an insurance policy?

Most policies consist of four parts: declarations, insuring agreements, conditions, and exclusions Since any insurance provider can do business and present the policy to the insured, those pieces may be arranged in a different order than listed here.

What are the main components of an insurance policy document?

  • Declarations Page.
  • Schedules.
  • Insuring Agreement.
  • Policy Coverage.
  • Exclusions.
  • Conditions.
  • Endorsements.
  • Glossary.