Why is automobile insurance sometimes referred to as a “packaged policy?
Why is automobile insurance sometimes referred to as a “packaged policy?” What are the parts of the package? In the past, if a person wanted to purchase all the coverage that the modern day automobile insurance policy provides, he or she would have had to purchase at least four separate policies. Changes in the laws that regulate the sale of insurance now allow the insurance industry to sell policies that combine the separate coverages into one all encompassing policy. The main advantages of combining the various coverages are lower expenses, and therefore a lower cost to consumers, and the convenience of being able to purchase the property, automobile liability and other coverages in a single policy. The standard private passenger automobile insurance policy can have up to four different coverages. Only the first coverage is standard – the remaining three coverages are optional. Bodily Injury & Property Damage (BI/PD) provides liability coverage that protects the insured from lawsuits
