Car Insurance 101
The type of insurance policy you have is written in detail right in the declaration page so make sure that you have taken the time to read and understand it to know the exact coverage you have. It’s smart too if you will go through your policy and make sure that you don’t have overlapping items similar to rental insurance. Normally, this is covered on credit card agreement so you may only be wasting money to have it. You can upgrade your insurance and cancel it when you want so always keep that in mind.
In reality, there are a number of people who are asking the question on what does car insurance really cover. As a matter of fact, the answer to this question will depend on the policy and the plan that you are going to buy. But simply put, there are 4 major categories of protection used that you can choose.
Number 1. Liability insurance – this is covering the injuries to other party, property damages and damage to other cars in a collision or accident. Let us say for example that you have a car that’s not worth very much and you are not driving it often at the same time, then getting liability insurance makes sense. This is actually a cheaper alternative than buying comprehensive insurance with pricing starting for as low as 29 dollars in some states for good drivers.
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Number 2. Collision insurance – what this will do is pay for the medical costs and the damages pertaining to you. As a matter of fact, if your car is new and is worth more than 12000 dollars, it is smart to get such.
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Number 3. Comprehensive insurance – this is actually the gold standard of coverage since this type of car insurance policy costs you more but will provide wide varieties of protection too. It also coincides with collision and repair or replace your car for events that has caused loss or damage, not relating to a vehicular accident. In other words, if your car is stolen, you’ll be protected and have it replaced for the current worth it has in the market. Weather related damages to your car will also be covered. A common example of this includes animal incidents, fires, flooding and such.
Number 4. Uninsured motorists insurance – there are people driving on roads who are not insured. Fortunately, you will be protected from lawless drivers by buying this kind of car insurance. In relation to this matter, if you ever find yourself in an accident with someone who doesn’t have insurance, you will still be insured depending on the limits of policy you have bought.