Vehicle insurance is coverage for automobiles, vans, trucks, and other similar road vehicles used on the highways. Its primary function is to offer financial protection against physical harm or personal injury caused by road accidents and also against possible liability which may also arise out of accidents in a car. It serves as a sort of umbrella policy that safeguards you from financially ruin caused by injuries in an accident. It gives you peace of mind by assuring you that your vehicle, whatever its type and size are protected from theft or damage.
You have three basic types of car insurance – liability, comprehensive, and collision coverages. Each offers different levels of protection at varying premiums. Liability covers medical expenses incurred due to an accident; collision covers property damage incurred by your car while in an accident; and comprehensive covers losses caused by theft or damage due to fire. Consult with a reputed car insurance company to help protect your needs.
There are different classes of car insurance policies based on the level of coverage they offer. The most common is the third party only coverages. This type of policy provides minimal insurance coverage. Third party coverages offered by majority of reputed insurers fall under this category. It covers the medical expenses and property damage in case you are involved in an accident with another vehicle.
The next coverage under motor vehicle insurance include full, collision, and comprehensive policies. These coverages are offered by many reputed insurers in the market. However, it is advisable to compare the premium cost of each type of these policies before taking a final decision. You can get affordable motor vehicle insurance if you follow certain tips.
Liability insurance ensures protection in the event you hit another person’s vehicle or someone else’s vehicle. You need to find out from an insurance agent the extent of liability coverage. It is recommended to opt for a higher amount of liability coverage as the cost of repairs would be low. Collision insurance helps you replace the damaged motor vehicle in case you meet with an accident. If the cost of the repairs exceeds the value of the vehicle you own, then the insurance will pay the difference.
Car insurance helps you get financial support when the vehicle you own is stolen. In every state, thefts account for a major percentage of the total insurance losses. To keep your car safe at all times, opt for an extensive liability insurance. However, if your car is not worth more than a specific amount, then you can also opt for a comprehensive insurance. You should keep yourself aware of the fact that all vehicles have to be registered in every state. In this regard, make sure you have a copy of the license plate in your vehicle.
Collision and comprehensive car insurance coverage have very similar features, but they differ in certain aspects. The deductible is the amount you have to pay for the repairs in case of a car accident. For this, you have to pay a deductible amount while your car is fixed. It is better to choose a deductible which is less than the repair cost, so that you do not have to pay for the repairs beforehand.
Some people consider that collision insurance only offers compensation for the damages incurred in an accident, but it doesn’t cover the drivers individually. While the majority of insurance policies offer individual coverage for drivers in case they meet with an accident, drivers might get additional coverage for passengers or their pets. If you own a pet, then it makes sense to purchase a rider that provides additional insurance coverage for your pets. This helps you get the right kind of coverage for your car insurance policy, if you encounter an accident, regardless of whether you are insured or not.