Unlike many other insurance types that you can either opt to take or forego, vehicle insurance is a must-have. In most if not all countries, it is illegal to get your car on the road without at least the minimum amount of auto insurance. This is because anything can happen while on the road, and you may not have enough money stashed somewhere or in your bank account to cover for all the losses you may incur, say after a road accident.
Depending on the policy you choose, car insurance also protects your investment from various kinds of risks, including accidents, theft, vandalism, and fires. In case someone is hurt in a car crash, car insurance may also take care of the hospital bills and treatment costs for you, passengers, and even third parties.
Again, this depends on the policy you pick since different policies have different terms of coverage. This means that when buying car insurance, it is paramount to have some knowledge about the options available to you. Only then you can compare different auto insurance SR22 quotes and all extra features that come with various insurance policies. With this having been said, here are a few of the most common types of vehicle insurance you want to know more about.
Comprehensive Insurance
Comprehensive car insurance is one of the top-ranked covers offered to private vehicle owners. It provides cover for every conceivable aspect related to your car and you as the policyholder in case of an accident. The costs may vary widely depending on the type of your vehicle, your residential area, the age of the car, as well as its value.
Comprehensive insurance is available for different types of vehicles, from trucks to motorcycles. If you are planning to insure your motorbike, comprehensive insurance is among the best options. This is because it protects both you and your wheeled machine from harm or damage. In case you get in an accident that isn’t a collision, you can rest easy knowing that you don’t have to incur all the costs involved in the aftermath when you have comprehensive vehicle insurance.
Collision Coverage
The term collision refers to the kind of accident where you bump into another vehicle or hit an obstacle while driving. Collision coverage usually helps take care of the repair costs for your car in case you get into such an accident. If the car is beyond repair, the insurance company may also replace it with a new one, usually not exceeding its actual value with your deductibles subtracted. Typically, collision insurance is optional, but some lenders and leaseholders may require you to purchase it.
Personal Injury Protection Coverage
This type of car insurance is usually an extension of other types of car insurance. Apart from medical costs, it may also cushion you from other effects, such as the loss of income after an accident. In most cases, personal injury protection coverage could take care of up to 80% of the expenses. Nonetheless, this may depend on the limits of the policy.
Third-Party Insurance
Third-party insurance is mandatory in most countries. Every vehicle is required to have this cover before the rubber meets the road. It’s ranked among the lowest, as far as the benefits are concerned. It offers the essential benefits that protect your car in case of an accident. The cover protects the vehicle owner from any liabilities that may arise from the third party in case of an accident. It’s wise to note that this cover does not cover the owner of the car from personal liabilities. In case of any repairs or hospital bills incurred out of the accident, you have to bear the cost, unfortunately.
Automobile Liability Coverage
In many countries and states, motor vehicle liability coverage is mandatory. The law in those states and countries usually set a minimum amount of coverage that drivers are required to purchase. Auto liability coverage helps cover the costs of treatment for any injured persons if the policyholder causes an accident. It also protects you from liability in case you damage someone else’s property while on the road.
Third-Party, Fire and Theft Insurance
With the different car insurance types, it’s always critical that you take time and understand the differences in each cover before you take one. Just like the name suggests, this one covers fire, theft, and third parties in case the third parties sustained injuries or damage as a result of the accident. This cover rests you easy in that the entire burden is lifted from you and placed on the insurance company. Furthermore, it also covers some fire-related accidents. However, it will be essential to find out the specific fires the insurance company will pay for and the ones they don’t cover entirely. The cover does not end there; it also covers any liabilities associated with the robbery of your car. It compels the insurance company to restore your vehicle if it’s stolen.
Uninsured & Underinsured Motorist
It is not unusual to be hit by another driver, and they don’t have insurance, or their policy limits are lower than the cost of damages. If you are ever bumped into by an underinsured or uninsured driver, this policy could help pay for your medical expenses or even your vehicle’s repair costs. In some states, this type of car insurance is actually a requirement by law.
Owning a vehicle makes your life easier and much more convenient. For some people, it is a passion to have a fleet of nice rides in the garage. One of the significant merits of owning a vehicle is the ability to maneuver around at your own independence and comfort. Whether you use it for business, to get around, or for luxury, having the right insurance policy is paramount.
But then again, purchasing car insurance can be inundating, especially if it is your first time. Different insurance companies offer different insurance products to their customers, some of them in other names. When getting insurance to protect yourself from unexpected costs and frustrations, the above points can help you choose the coverage you need without much sweat.
