You should have car insurance that covers the losses if an accident happens. This will protect you from out-of-pocket expenses associated with careless driving or someone who hits you while driving. Car insurance agents offer different types of auto insurance policies.
Find below different types of car insurance policies on the market.
1. Third-Party Liability
Third-party liability is the most basic type of car insurance. This policy covers you if you cause an accident, injure another person, or damage their property. Third-party pays for any damage to others' vehicles or injuries to other people. This can be a costly claim if there are injuries or any damages.
Besides, third-party car insurance can cover your legal costs if you're sued by someone injured in an accident you caused.
2. Collision Insurance
Collision insurance covers the cost of repairs to your vehicle after an accident. It applies to all registered vehicles, whether owned by you or someone else.
Collision coverage protects against loss from damage to your vehicle caused by a collision and not due to theft, vandalism, or fire. If your vehicle is damaged in an accident with another vehicle or object, this coverage will pay for repairs.
3. Comprehensive Coverage
Comprehensive coverage, also known as other than collision (OTC) insurance, helps pay for damage to your car that isn't your fault. Comprehensive car insurance covers both damages caused by weather elements and losses due to theft of your car. The policy also covers damage done by fire and vandalism. Car insurance does not include a fire insurance policy because comprehensive coverage covers fire damages.
4. Personal Injury Protection (PIP)
Personal injury protection (PIP) is coverage that pays for medical expenses if you're injured in an accident, regardless of who caused it. You'll pay a small deductible besides your regular premium if you have this auto insurance. If you don't have PIP, you can buy it from a car insurance agent after an accident and use it to pay your medical bills.
PIP pays out on a no-fault basis, which means that the insurer will pay your medical bills no matter who was at fault for causing the accident. This differs from liability insurance. Liability insurance covers expenses related to injuries caused by another driver's negligence.
5. Uninsured or underinsured Motorist Coverage
Uninsured or underinsured motorist coverage protects you if a driver hits your car and leaves the scene. Besides, if you get injured by a hit-and-run driver, UM/UIM will pay for your medical bills and lost wages. UM/UIM coverage also protects you if you're hit by an uninsured driver who doesn't have enough to cover your losses.
Conclusion
Car insurance provides protection for you, other motorists, and your vehicle in the event of an accident. The amount of coverage, price, and car insurance you need depend on several factors. If you don't have car insurance yet, contact a reputable car insurance agent and buy one that will work best for you.
Share13 May 2022
I have always been someone who loves to work hard for what they have, which is why I started paying attention to how I was protecting my investments. I realized that although I had great medical and dental insurance, my car needed a little extra protection. I started working hard to find an insurance policy that would work well for my needs, and before I knew it, I was able to sign up for a new policy. This blog is all about choosing a car insurance policy that works well for you and your family, so that you don't have to worry about falling short.