Insurance

The Different Types Of Car Insurance And Their Benefits

The Different Types Of Car Insurance And Their Benefits

The number of vehicles on the roads is increasing day by day because banks are providing car leasing on simple requirements. In the highly populated cities of the world, road accidents are also becoming routine although strict traffic rules are implemented. Accidents and financial losses can be crucial for car owners. That is why it is necessary to get your car insurance.

Car insurance is an agreement between the car owner and the insurance company. According to this agreement, the car owner makes the payment of premium in exchange for protection against financial losses due to a car accident.

Purchase car insurance and avoid extra burden on your packet. Before purchasing a car policy, the first thing you need to do is compare the cost of premium and coverage offered by different insurance companies. This can also be done online. You can get car insurance quotes and make the final decision.

Types of car insurance

There are the following types of car insurance.

Liability Insurance: This type of insurance is legally required in almost all states of the USA. Coverage includes damages to other people including injuries and their property.  Medical expenses and funeral costs are also included in the cover. This type of insurance does not cover damage to you and your car.

Collision Insurance: It provides coverage for damage to your vehicle caused by an accident with other vehicles, poles, guard rails, rollovers, etc.

Comprehensive insurance: This type of insurance protects against theft and damages due to reasons other than a collision with another vehicle or object. These damages can be due to the following.

  1. Fire
  2. Falling objects
  3. Explosions
  4. Earthquakes
  5. Floods
  6. Vandalism
  7. Damages due to animals

Medical payment insurance: This type of insurance covers the cost of medical treatment bills for you and your passengers related to covered accidents regardless of anybody’s fault.

Personal injury protection insurance: This type of insurance covers certain medical treatments and also loss in wages because of injuries and the victim is not able to go to work.

Uninsured and underinsured motorist insurance: Uninsured insurance covers you in a situation when you are hit by an uninsured driver or hit and run driver. Underinsured insurance covers you when you get in an accident with a driver with insufficient insurance to pay your loss.

Classic car insurance: This type of insurance is specially designed for vintage and classic cars.

High-risk car insurance: This type of insurance covers if you are considered to be high risk due to many reasons like accidents, convictions, suspensions, non-payments, inexperienced, etc.

Commercial automobile insurance:  This type of insurance covers when you use a car for business purposes.   This insurance also covers the driver or employees who are authorized to use your vehicle for the business.

Gap insurance: If your car is stolen or damaged completely then the insurance company will pay you after calculation of depreciation. This amount is called the actual cash value of the car. If you have purchased a car on leasing then the cash value of the car may not be enough to pay off the remaining amount of the lease. The gap insurance covers the difference between the actual cash value of the car and the amount you still have to pay.

Car insurance offers many benefits because you have to empty your wallet in case of an accident. After the accident, not only the cost of medical treatment that you have to pay but also the heavy cost of car repair. Sometimes, you have to pay the cost of damage to the property related to the accident. This can be a heavy blow to your pocket. You should get your car insured to get protection against any sudden loss to you and your car due to an unfortunate accident or incident.

 

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