Car Insurance is the a deal between you and insurance company. In our daily life, accidents can happen with us. A car insurance contract can help you to cover repairs to your vehicle. In that case of loss, the insurance company agrees to pay your losses as per policy. Car insurance protects you from financial losses in incidents covered by your insurance policy agreement. The car insurance policy defines what costs insurance company will responsible to pay and under which circumstances, insurance policies will be implemented.
What are the types of car insurance coverages?
- Property Damage liability : If you or another driver operating your car causes to another vehicle or other property demages someone’s property accidently, then property demage liability will be implemented.
- Bodily Injury liability : If you or another driver operating your car causes to injure or death of someone’s, then it provides protection you in that circumstances.
- Medical Payments, accidental or Personal Injury Protection coverage : It provides reimbursement for medical expenses for injuries to you or your passengers. They may also be coverage if you are injured by a vehicle as a pedestrian.
- Uninsured motorist coverage : When an accident is caused by a driver who does not have auto insurance, it reimburses you. In some states, there is also Uninsured Motorist coverage for damage to your vehicle. Underinsured motorist coverage will cover costs when another driver lacks adequate coverage to pay the costs of a serious accident.
What other types of auto insurance coverage that are typical ?
Although, auto insurance covers the damage your car causes but it does not cover damage to your own car. An auto insurance policy is comprised of different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you’re financing a car, your lender may also have requirements. Most auto policies are for six months to a year. Your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium. To cover your own car, you should consider these optional coverages:
- Comprehensive : provides coverage against damage and theft caused by an incident such as fire, flood, trees or falling rocks etc. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. If you have an older vehicle you may want to consider whether you need this coverage as it is normally limited to the cash value of your car.
- Collision coverage : pays for damage to your car when your car hits, or is hit by, another vehicle or other object – when you’re at fault. Collision coverage will not reimburse you for mechanical failure. To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket.
- Glass Coverage : provides coverage from windshield damage. In some policies, deductible glass coverage is not included, which also includes side windows, glass sunroofs and rear windows. Or you can buy supplemental glass coverage.
Is it worth adding extra cover?
- Breakdown cover
- Legal cover
- Key cover
- Windscreen protection
- Courtesy car
Who Does Auto Insurance Coverage Protect?
An auto insurance policy will cover you and other family members on the policy, whether driving your car or someone else’s car (with their permission). Your policy also provides coverage to someone who is not on your policy and is driving your car with your consent. Personal auto insurance only covers personal driving. It will not provide coverage if you use your car for commercial purposes—such as making deliveries. Some auto insurers now offer supplemental insurance products (at additional cost) that extend coverage for vehicle owners that provide ride-sharing services.
How long do policies last?
Most car insurance policies last for one year, although you can choose to leave your policy early subject to cancellation fees as per policy. If you need car insurance cover for a shorter period you can take out a short term policy that can last just a day or a few weeks.