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Do you know What is car insurance?

Updated on July 6, 2018
Insurance
Insurance | Source

What is car insurance?

Nowadays, buying car insurance seems a common, necessary and obligatory fact in most cities of the world; as well as knowing the expiration dates and the consequences that may have to circulate with an expired contract. However, if we ask a large number of motorists what is an insurance? What coverage do you have? How are insurance rates determined? Why there are a wide variety of car insurance, what is the difference and what do they offer? The answers would be many and varied, without agreeing at all. Everyone knows how annoying it is to receive a call from an insurance salesman trying to convince us that their insurance is the best option. In general, you end up not paying much attention and most choose to buy insurance at random, because the seller was very persistent or because insurance was included in the purchase of an agency car.

In short, what is certain is that, a traffic accident can happen to anyone, at any time, that is why it is necessary to have on hand the date of contract and expiration of the insurance; Knowing that you have an insurance policy that can economically afford the sinister and thus cover expenses for the partial or total loss of the vehicle, as well as medical expenses, is a peace of mind for the family. So, knowing and knowing what car insurance or insurance policy is for sure is absolutely necessary.

What is it? The insurance or contract for the motorist is an agreement in which the contracted company is
obliged to pay compensation to the contractor (according to its coverage and with the payment of the agreed premium in advance) in case of an event or accident.

Choosing insurance for our car may seem a difficult time to choose due to the number of offers that exist for this item, in addition companies make their packages so attractive that sometimes could confuse our tastes and needs, so it is important to know what types of insurance exist to make a good choice:

Types of insurance

Comprehensive Coverage (Comprehensive physical damage coverage)

When our vehicle is stolen, it suffers damage due to weather effects or even by animals, this type of insurance is really useful, however, it may not be necessary for anti-theft devices, in addition if it is counted with a car model that is easily replaceable it is not convenient to hire it.

Collision Coverage

As the name implies, it covers the cost of repairs when the cost of repairs exceeds the cost of the vehicle. It is suggested to hire this type of insurance when you have a modern and expensive car.

Personal Injury Protection

Although another type of insurance can pay the expenses generated in an accident, the difference of this insurance is in the total coverage of your medical expenses and of the passengers that accompanied you at the time of the incident, regardless of who is at fault

Uninsured / Underinsured Motorist Protection (Uninsured Motorist coverage)

Many times we do not give importance to the contracting of our insurance and we do it for the price or because it was included in the purchase of our car, at the time of the incident we realize the minimum coverage contracted or when the expenses of the incident exceed the limits imposed in our contract, if someone was legally responsible for any damage, would not receive any payment. This type of insurance is useful to hire for these types of situations.

Liability Insurance (Bodily Injury liability)

Covers damages when it is determined that you were at fault, could be damage to property, repairs or medical costs resulting from the accident. Most insurers recommend it to provide additional protection in case of being found guilty of an accident, as long as the expenses do not exceed the contracted coverage.

Don't forget

What happens if you drive with expired contract or forget to pay the premium and have an accident? In the first instance, the insurance is not obliged to cover the expenses of the accident, in addition to the fact that a crime is incurred, if at least there is no basic "third party damages" insurance. Also, in the event that a traffic agent stops you for any infraction and detects that your insurance is expired or you do not count on it, you will be subject to an economic fine.

REFERENCES:

https://www.geico.com/information/aboutinsurance/auto/

https://www.iii.org/article/what-auto-insurance

http://www.21st.com/insurance-newsletters/2012/01/5-types-of-car-insurance-coverage.htm

https://www.canstar.com.au/car-insurance/types-of-car-insurance/

© 2018 Eraconsa

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