What is Personal Lines Insurance?

Personal lines insurance is an insurance policy offered to an individual rather than a commercial business or group business policy. Auto insurance is a common form of personal lines insurance because the individual driver is insuring the risk of driving a vehicle. Personal lines insurance is an insurance policy that is offered to an individual. This is different from a commercial lines business or a group business commercial policy or agreement.

What are some common forms of personal lines insurance?

There are many different types of personal lines insurance products, but some of the more common examples are:

Auto coverage

In this case, the policyholder is insured for the risk involved in driving a vehicle. This form of insurance can take many specific forms and ranges from comprehensive cover, which is designed to cover the majority of eventualities that an individual may face to the more basic automobile liability insurance, which in most states is the minimum level of insurance that is legally required to drive a vehicle.

Automobile liability insurance coverage only applies to 3rd parties in terms of the claims payable.

Homeowners Insurance

A type of personal lines insurance is designed to cover a homeowner against liability for any personal property damage at their residence..Like auto insurance, there are many different variations of homeowners insurance, and coverage may vary widely between two different policies. Renters insurance similarly covers renters.

Private Medical Insurance

This insurance is designed to cover medical costs for medical eventualities like bodily injury or illness for the policyholder. Levels of coverage may vary greatly between different types of private medical insurance.Still, they may extend to long-term or short-term healthcare costs or coverage for disabilities/ disability insurance and support with loss of earnings or recovery from these disabilities.

Personal Coverage Against Accidents

This insurance is a little less common than other forms of personal lines insurance. However, it is designed to cover the purchaser of the insurance policy against forms of personal injury (of an unforeseeable accident nature) that are not covered by other forms of personal lines insurance. For example, both auto insurance and homeowners insurance may include some form of personal accident coverage, but the terms under which they may be claimed are limited.

Usually, this limit is to automobile accidents occurred within a vehicle (auto insurance) or within the home and its grounds and outbuildings (homeowners insurance)

Travel Insurance

Travel insurance can cover various risks to the traveler and act as a “top-up” to other coverage that may not be valid in other countries or states. This form of personal insurance usually applies to medical care, lost baggage, and loss or theft of money, personal property, etc., when traveling.