Basic Types of Auto Insurance
There are different types of auto insurance plans available in the market today. In the US, auto insurance is a legal requirement; it is not a choice because if it were, no one would have seen the need to have one in the first place. The cost of auto insurance will vary depending on the type of insurance coverage and your insurer of choice. Basically, the higher the coverage the higher you will pay, and vice versa. This difference in cost and type of insurance comes as a blessing in disguise so to speak to different car owners as they will end up saving a lot depending on the type of insurance plan they opt for, and based on the type of car they seek to insure.
The first type of auto insurance is the liability coverage. This type of insurance covers all damages and costs incurred to a third party when you are at fault. The first type of liability coverage is known as bodily injury liability, which, as the name would suggest, covers the cost incurred by a third party in terms of medical or funeral expenses in the event of an accident that you are at fault. By the same token, if a third party files a legal suit against you because of an accident that you are at fault, the liability coverage will provide you the necessary legal defense, without you having to go back to your pocket. Note the keyword here, “only when you are at fault”.
The other type of auto insurance that falls under the liability category is the property damage liability policy that covers the cost incurred when repairing or replacing damaged property in the event of an accident when you are at fault. The other type of insurance is known as collision or comprehensive coverage, which, as the name would suggest, covers almost everything under different circumstances. In the event of an accident, whether you were driving or someone else was, your insurer, under the comprehensive insurance coverage will cover all costs incurred as a result of that accident.
Further, the comprehensive coverage will cover the cost in the event that your car is damaged by natural disasters such as floods or fire, or if it is stolen. Generally though, it is important to realize that specific insurance coverage is limited to the specific terms and conditions stipulated in the policy. Thus, you need to confirm with your insurer of choice for details of what is, and what is not covered before appending your signature as it will be a legal binding agreement, for a minimum period of at least 6 or 12 months.
- Affordable Auto Insurance Policies
Unbeknown to many, the type of insurance coverage that you opt for will determine the amount of insurance premium you will be paying. In other words, the more insurance coverage you apply for, the higher your...
- Why is Women's Car Insurance Cheaper?
If you thought the battle of the sexes is over, you now have a reason to think again. Car insurance service providers prefer female drivers than their male counterparts. Why? Simply because female drivers are...
More by this Author
Chronic Inflammatory Demyelinating Polyradiculoneuropathy is a immune-mediated inflammatory disorder of the peripheral nervous system. It is believed that the condition is caused by immune cells attacking the exterior...
The basic rules of thumb for choosing low-carbon, eco-friendly fresh produce are as follows: favor local, non-exotic seasonal produce; avoid air-freighted foods but don't worry so much about fruit and vegetables...
Once you have decided you want a kitten, there are actually quite a few decisions to be made before you go down a particular path in getting it. Do you want a pedigree or a moggie? Are you after a particular breed? How...
No comments yet.