The coverage of an insurance, also called guarantees, are the benefits that are defined and specified in the particular and general conditions of the contracts of the policies. With the coverages the insured is protected up to the agreed economic limit, of the consequences that derive from an accident.
In any insurance, coverage or guarantees are the most important thing to consider when you are going to hire one. Look well at the risk you are running and what are the best coverages you choose for the compensation to cover the damages caused. If the type of insurance is complex, it is essential that you have the advice of a professional because it will inform and guide you at all times.
Car insurance coverage
By law, the main coverage that the car insurance has is that of Obligatory Civil Liability, which guarantees to cover the physical and material damages that the vehicle may cause to a third party. The three common car insurances are third party insurance, extended third party and all risk. From there, the insured can add the coverages that he needs. Below, I detail what coverages are in each type of insurance.
Third party insurance
- Voluntary Civil Liability. Increases the indemnification of the Obligatory Civil Liability up to 50 million euros.
- Legal defense and claim of damages.
- Accidents of the driver with medical assistance.
- Travel Assistance
Third party insurance extended
All the same coverages as third party insurance with the addition of:
- Theft of the vehicle
- Break of moons
- Fire
Comprehensive insurance
They include the coverages mentioned in the third party insurance and extended third parties. But, in addition, the coverage of own damages that can be caused by the same driver when there is no contrary or by inclement weather is added.
Optional car insurance coverages
- Sustitution vehicle
- Collision with game animals
- Withdrawal of license
- Subsidy for withdrawal of license
- Total loss of the vehicle
- Compensation for immobilization
Home insurance coverage
Home insurance must cover two risks to which a home is exposed. On the one hand, the damage suffered by the house; and, on the other, the damages that may be caused to third parties.
Thus, Civil Liability is essential to hire, provided that one wants to be calm and free of an accident that can have repercussions in having to pay large financial expenses.
Basic home insurance covers the most elementary of the damages you may have. These coverages -mainly very limited- are:
- Fire
- Flood
- Theft
- Glass breakage
- Legal defense
The optional coverages of home insurance are:
- Extended legal defense
- Coverage of jewelry and valuables
- Water damage extended
- Pet Civil Liability
- Appliance repair
- DIY and plumbing services
- Coverage of the garden
- Theft in the home
- Street robbery
Health insurance coverage
We could classify health insurance into three types, which are the medical chart without copayment, medical chart with co-payment and reimbursement of expenses. In all these variants you have access to a list of professionals and health centers.
These three modalities differ when you use medical services. In the medical table without co-payment, the insured does not pay for any service if he goes to the centers specified by the company.
In the case of the medical chart with co-payment, the insured pays some of the services that he requires based on rates already established by the insurer.
And in the medical chart with reimbursement of expenses, the insured can access the center or professional who wishes and is not on the preset list, since the company will return most of the cost of the invoice.
The basic coverages of the medical staff are:
- Unlimited access to centers and professionals listed by the insurance company.
- Hospitalization
- Nursing
- Emergency
- Special treatments
- Preventive medicine
- Family planning
There are some optional guarantees that can be added to a basic medical chart. For example:
- Dental coverage
- Plastic surgery
- Health coverage before risk activities
- Second medical opinion service
- Homeopathy
Life insurance coverage
Life insurance carries a mandatory coverage in hiring, it is death coverage. Thus, if the insured dies, the company will pay compensation to the beneficiary. This is the main life insurance coverage. But there are different options that can be added:
- Permanent physical disability due to an accident or illness.
- Permanent professional disability due to an accident or illness.
- Severe disease such as myocardial infarction, cancer, kidney failure, vital organ transplant, cerebrovascular accident.
- Double compensation capital in case of accident.
Insurance coverage is the amount of risk or liability that is covered for an individual or entity by way ofinsurance services. Insurance coverage, such as auto insurance, life insurance – or more exotic forms, such as hole-in-one insurance – is issued by an insurer in the event of unforeseen occurrences.
5 Types of Car Insurance Coverage Explained
1. Liability Insurance
Liability insurance covers you in the event you are in a covered car accident and it is determined the accident is a result of your actions. Liability insurance will cover the cost of repairing any property damaged by an accident as well as the medical bills from resulting injuries. Most states have a minimum requirement for the amount of liability insurance coverage that drivers must have. If you can afford it, however, it is usually a good idea to have liability insurance that is above your state’s minimum liability coverage requirement, as it will provide extra protection in the event you are found at fault for an accident, as you are responsible for any claims that exceed your coverage’s upper limit. You wouldn’t want to run the risk of having to pay a large amount of money because your policy limit has been exceeded.
2. Collision Coverage
If there is a covered accident, collision coverage will pay for the repairs to your car. If your car is totaled (where the cost to repair it exceeds the value of the vehicle) in an accident, collision coverage will pay the value of your car. .
If your car is older, it may not be worth carrying collision coverage on it, depending on the value. On the other hand, if you have a more expensive car or one that is relatively new, collision insurance can help get you back to where you were before any damage to your car. Note: If you have a lienholder, this coverage is required.
3. Comprehensive Coverage
What if something happens to your car that is unrelated to a covered accident – weather damage, you hit a deer, your car is stolen – will your insurance company cover the loss? Liability insurance and collision coverage cover accidents, but not these situations. These situations are covered by Comprehensive (other than Collision) coverage.
Comprehensive coverage is one of those things that is great to have if it fits in your budget. Anti-theft and tracking devices on cars can make this coverage slightly more affordable, but carrying this type of insurance can be costly, and may not be necessary, especially if your car is easily replaceable. Note: If you have a lienholder, this coverage is required.
4. Personal Injury Protection
While Comprehensive coverage may be something you don’t need to purchase, Personal Injury Protection (PIP) is something you should. The costs associated from an accident can quickly add up, and in order to cover those costs Personal Injury Protection is available. With this coverage, your medical bills along with those of your passengers will be paid, no matter who is at fault for an accident. Note: This coverage is not available in all states.
5. Uninsured /Underinsured Motorist Protection
While state laws mandate that all drivers should be insured, this is unfortunately not always the case. Another issue that can arise is that while a driver may have liability insurance, many states have relatively low minimum coverage requirements that may not be enough to cover all of the expenses of an accident. So, if someone is legally responsible for damages related to an accident, you won’t receive any payment if they do not have coverage or you will receive less than you need to cover the cost of damages if your damages exceed their coverage amount. This is the type of situation where Uninsured and Underinsured Motorist Protection would help with expenses.
