Auto Insurance is a means of providing protection to you and your family, so that you can enjoy your drive without a worry in the world. In case of any mishap, it not only ensures a compensation for your own vehicle but also covers for the third party liability. If insured, your automobile is safeguarded from the ill-effects of negligent driving or calamities and you are sheltered from the claws of the jurisdiction. The auto insurance policy can broadly cater to-

* Automobile/Vehicle damage:

It includes harm caused to the vehicle due to natural calamities, burglary, during transit, transportation or even in case of violence inflicted during riots.

* Accident cover for the Policyholder:

The insurance can be claimed if you, as a policyholder are involved in an accident. It pays for the medical expenses.

* Third Party Liability:

The auto insurance also reimburses in the event of any injury to the third party or a third party property damage.

Some of the incidents which are not heeded by the auto insurance coverage are any issues with the working of the internal electrical or mechanical parts, external wear and tear of the vehicle, accidents resulting out of undisciplined driving or driving under the influence of alcohol.

There are different types of auto insurance coverage available, the most common of them being according to auto insurance agents,

> Liability:

It implies that the insurer is accountable for any bodily injury (BI) or Property Damage (PD) and any other expenses that need to be paid for. Liability falls under two categories:

1. Combined Single Limit- It takes care of both the Bodily injury and Property Damage facets as a single unit and covers both under the same policy.

2. Split Limits-This policy splits the Property Damage and Bodily injury coverage in two. There is a maximum limit to the payment that can be made on a per person and per accident basis.

> Full Coverage:

Full Coverage implies Comprehensive and Collision coverage.

1. Comprehensive Coverage-It covers the insurance for those vehicles which have been damaged as a result of an impact other than that of a collision. It is subject to a deductible.

2. Collision Coverage- It covers the vehicles which have been damaged as a result of an accident and pays for its repairs. For High Risk car insurance policies, this is by far the cheapest option!

The government has taken certain measures to combat the problem of uninsured vehicles. The jurisdiction in 48 states across United States requires the motorist to purchase a liability insurance coverage. In addition, some states have passed the petition which urges the vehicle insurer to assign license plates to the motorist along with the insurance coverage. These licenses would be returned to the insurance agents after the term of the auto insurance expires and the licensees will get back their premiums. This way, the law enforcing officers would be able to track the motorists who do not have license plates on their vehicles. The motorist can be penalized or in worst cases, they can even be put behind bars, if found guilty of flouting the law.