Different Types Of Car Insurance
Car insurance is insurance on vehicles, specifically cars, trucks, and any other road-going vehicles. Its primary function is to offer financial coverage against physical damage or injury resulting from road accidents and against legal liability which may also arise from accidents in a car. It serves as the counter for the cost of repairing the vehicle that has been damaged in an accident and also acts as a security blanket for the policy holder. It is important that you buy car insurance from a reputed company.
Car insurance offers various types of coverage, and depending on your requirement, you can choose from them. In case of physical damage cover, it covers all your vehicles including the car and its parts. If the damage is not the driver’s fault, then full replacement of the vehicle is covered by the insurance, which may mean purchasing a new one or taking someone else’s name on the policy.
Liability, on the other hand, covers the costs incurred due to an accident caused by the negligence of the driver involved in the car insurance. This includes damages to another person’s property or even to the other person himself, if any damage to their vehicles occurs as a result of the accident. The policyholder’s legal responsibilities depend on the type of coverage chosen. For example, a collision cover that has no medical expenses coverage may be taken only after the claim has been paid in full and the vehicle repairs have been made.
Collision coverage, in addition to liability coverage, provides financial coverage in the event that your classic car is stolen, damaged or wrecked. You may decide to avail of this coverage depending on your personal requirements. The more your vehicle is worth, the higher the amount of coverage you need to get. This is especially true if your vehicle is a vintage or antique.
Comprehensive auto insurance on the other hand, is a combination of the two types of auto insurance. This type of coverage pays for all the damages and costs associated with theft, collision and loss of your vehicle. It also offers coverage for damages caused by natural disasters such as earthquakes and floods. There are different types of comprehensive policies available in the market. These include collision, non-collision and liability coverage.
If your car is old, you may want to consider adding additional collision coverage to your auto insurance. This is especially true if your vehicle is not worth that much. It may also help to protect against inflation. However, non-collision and liability insurance may help to save you money in the event of accidents and thefts. This will also help you if you get into an accident without having the right insurance.