What are the Different Types of Car Insurance?
When planning to buy a car, you need to understand the different types of car insurance available for you. Car owners do a lot with their cars. For instance, they go for fun drives with families and friends, drive to and from work every day, and even travel to new places when the need arises.
Due to the love they have for their cars, they ensure that the cars are always in good condition, observe road and other traffic regulations, and ensure that they are safe at all times.
However, they need to understand that even though they take these precautions, things such as disasters, tire bursts, breakdowns, and accidents can happen at any given time. They need to make sure that they are ready in case of these eventualities.
One way of doing that is by getting car insurance coverage. However, they need to understand what their requirements are, what they use their vehicle for, and the different terms governing different policies.
Types of Car Insurance
Different insurance companies have different car insurance covers designed to meet the requirements of their customers. When choosing a car insurance cover, you can use comparison websites such as iSelect to compare them and choose the one that meets your requirements. The most common types of car insurance include;
Underinsured and Uninsured Coverage
Some drivers are a bit careless to the point of driving a car without insurance. If you are involved in an accident with such a driver, you can get help from uninsured coverage to take care of your medical bills if you are injured.
In some places, it can even take care of any bills you incur if your car is damaged. In case the driver has a cover with limited liability – this means that the insurance cover cannot take care of all your resulting bills – the underinsured coverage will help you take care of the bills.
This is the most common type of car insurance and is required by law in most regions. Depending on where you live, you will be required by law to ensure that you have purchased liability insurance cover if you are a driver.
Liability coverage comes in two components. Property damage liability helps the policyholder pay for the damage they might cause to other people’s property. Bodily injury liability pays for the costs incurred when the policyholder causes bodily harm to another person.
Collision coverage is optional depending on where you live. It can also be required for those who have a vehicle lender or leaseholder.
In a situation where you hit something such as a wall when driving or are involved in a collision with another vehicle, collision coverage comes in handy to aid in repairing your car or even replacing it.
You might wonder “what is full coverage?”. But there is no such thing. You actually need multiple insurance policies for the best cover. One of those includes comprehensive coverage. Comprehensive coverage is used when covering the damage caused to your car by natural calamities such as hail and fire and other things like vandalism and theft. If the car cannot be repaired, then this coverage can help replace it.
Even though comprehensive coverage is optional, you might be asked to get the policy if you are still paying for the vehicle or leasing it.
Personal Injury Protection
This type of insurance is available in some states in the United States of America and a few regions across the globe. It is used to take care of any medical bills arising from a car accident.
However, you can use injury protection cover to take care of other expenses that might arise due to the injuries caused by a car accident. Examples of these expenses might come from lost income or even expenses arising from child care.
Medical Payments Coverage
Medical payments coverage takes care of the medical bills that arise from injuries caused by a car accident to the driver of the car, his or her passengers, and other family members. It commonly covers costs such as surgery, hospital visits, and X-ray costs among others.
In conclusion, there are many benefits of taking out insurance, and car owners need to make sure that they understand the policies terms and conditions before getting any of them. With thousands of insurance companies across the globe, a driver is likely going to find a policy that best meets their requirements without any problems.