Car Insurance 101
The kind of insurance policy you have is written in detail in declaration page so be sure that you always take the time to read and understand it to be able to know the exact coverage that you have. It will be a smart move as well if you will go through your policy and see to it that you don’t have overlapping items similar to rental insurance. This oftentimes is covered on the credit card agreement so you might be wasting money to money to have it. Always remember that you can always upgrade or cancel your insurance when you want.
Actually, many are asking the question on what does car insurance really cover. Truth is, the policy and the plan that you are going to buy will determine the answer to this question. But simply put, there are 4 major categories of protection used that you can choose.
Number 1. Liability insurance – what this policy will do is cover the other party, property damages and damage to other cars in a collision or accident. If you have a car that isn’t worth that much and you’re not driving it often, it makes sense if you will get liability insurance. It’s a cheaper alternative compared to buying comprehensive insurance with the pricing starts for as low as 29 dollars in some states for good drivers.
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Number 2. Collision insurance – this is going to pay for the medical costs and 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 – basically, this is the gold standard of coverage because this car insurance policy would cost you more but will also provide varieties of protection. It coincides with collision and repair or replace your car for events that caused loss or damage, not relating to a vehicular accident. What this mean is that, if ever your car is stolen, you’ll be protected and can have it replaced for its current worth in the market. Not only that, weather related damages that are done to your car will be covered. Animal incidents, fires, flooding and such are common examples of this.
Number 4. Uninsured motorists insurance – whether you like it or not, there are other motorists who are driving without proper insurance. Fortunately, you will be protected from lawless drivers by buying this kind of car insurance. With this being said, if you ever get yourself involved in accidents with someone who has no insurance, then you’ll be insured up to the limits of your policy.