At one end of the scale, you could opt for the basic minimum. UK require some level of insurance to drive a vehicle on the roads. This gives you basic cover against liability to third parties if you injure thstrong or damage their property. The law is not very generous and, in almost every state, the amount of cover would almost certainly be insufficient to cover claims for the loss and damage resulting from a traffic accident. This would leave the vehicle owner with the liability to pay the balance. But, as the level of prstrongium rises, so the extent of the cover improves. There is no such thing as total or complete coverage unless you pay for a tailored policy. The most you can expect to be included in a standard policy are some or all of the following:
1. Property damage
In traffic accidents involving more than one vehicle, you or someone driving with your knowledge and consent, damages the other vehicles. Whether there is another vehicle, there may also be damage to other property on the road or next to the road. So this includes fences, poles and buildings. As a simple example, one or more vehicles may break through the window of a store. The driver would therefore be responsible for physical repairs and any stock damaged. In some states, there would also be liability for consequential losses if the operation of the business was disrupted.
2. Bodily injury
Although it can be expensive to buy the genuine spares to repair an imported car, medical costs can and do run higher and longer. So, as to third party liability, it is very much in your interests to have this cover and to ensure that it also covers consequential loss of earnings. If you are very unlucky, you may injure a banker expecting a bonus, a famous sports personality or someone else likely to lose millions if they are unable to work in the short or longer term. It should cover not only you as the driver but anyone else driving your car with your knowledge and consent. Further, you may also be injured. It is therefore important that you have Personal Injury Protection (PIP) so your own medical expenses are covered whether you are the driver or a passenger in your own vehicle. The better PIP policies cover the costs of rehabilitation as a part of the treatment, lost earnings and, in the worst case, the cost of a funeral.
3. Uninsured or underinsured motorist
Unfortunately, a significant number of drivers on the road do not carry any auto insurance or the amount is inadequate. This covers you should the party at fault be unable to pay.
4. GAP coverage
If the amount of your insurance cover does not pay off an auto loan or the amount payable under a leasing contract, this cover bridges the gap. In the same way that your home can be worth less than your mortgage, your vehicle can have negative equity and be worth less than you need to pay off your liabilities.
5. Incidental expensesThese include a range of different costs such as rental reimbursstrongent, loss of use and towing charges, but personal property is not included. This is usually covered by the home insurance policy.