Auto insurance as we all know is the insurance consumers purchase for their vehicle be it a car, truck or any other automobile. The purpose of auto insurance is to safeguard the vehicle against accidents, theft and any other loss incurred. Auto insurance can cover, the insured party, the insured vehicle and the third parties. Different policies specify the situations under which each of these items is covered.
Like life insurance, auto insurance too has become the need of the hour. A surge in insecurity of the vehicles has resulted in many big and small companies venturing in this area and trying their luck.
There are different types of auto insurances available. The policies vary with the need and wants of the people purchasing the policy. For example certain types of insurance policies include bodily injury liability, property damage liability, medical payments, and collision and comprehension coverage for physical damage to the insured vehicle.
Broadly speaking an auto insurance policy is divided into five parts.
1. Declarations- this part of policy contains personal information about the drivers in your house. This includes their name and...