Car insurance is protection for automobiles, trucks, motorcycles, and any other road-going vehicles. Its main function is to offer financial protection against personal injury or physical damage resulting from road accidents and also against liability which may also arise out of car-related incidents in the vehicle. In addition, it aims to protect one’s assets, especially if the vehicle is a car. This coverage can also be combined with comprehensive or collision coverage for greater amount of protection. Most states require that the minimum coverages for liability on the road should be at least at 3rd of the total car value. car insurance tips
The cost of insurance depends on many factors. For example, the model of the motor vehicle, the make, its age, its mileage, etc. The driver, his driving history, the type of vehicle (motorcycle or car), the place where the vehicle is stored, its intended use, etc. are some other factors that influence the price of insurance.
Liability coverage is designed to pay for damages incurred by you as a result of an accident, regardless of who was at fault. This includes medical expenses, pain and suffering, lost wages, damage to property, and so on. With this kind of insurance, the damage you have incurred will be covered even if the third party had no legal responsibility to your injuries or damages. If the injured party sues you, the insurance company will reimburse you for all your losses.
Collision insurance covers damages to your vehicle due to collision with an insured vehicle driven by you. Most states require you to have liability only. This is because it covers the medical bills, loss of wages, and so on, but not the damages to your car. You can, however, include collision coverage with rental insurance to protect your car in the case you get damaged while driving someone else’s car.
Bodily Injury liability coverages vary from state to state. With this coverage, the insurance company pays for all medical bills and funeral costs resulting from a car accident if you are at fault. There are many different types of bodily injury liability coverages in the United States, including property damage liability coverages. This coverage will pay for damage to any personal property owned by you or your former employer. In the case of a death occurring through no fault of your own, wrongful death liability coverages may also be available.
Comprehensive coverage or “all risks” insurance covers any damages resulting from a covered accident regardless of who is at fault. Generally, comprehensive coverage does not exclude any liability for errors and omissions, which could occur in the handling or maintenance of your vehicle. The only exclusion is when you caused the accident by negligence, willful misconduct, or deliberate misconduct. This type of insurance usually has a lower cost than bodily injury liability coverages.
Medical expenses and rehabilitation are two more common types of benefits included in insurance contracts. Although most states require motorists to carry personal injury and property damage insurance, not all states have these types of financial protection clauses. It is important for consumers to check state law to determine whether these benefits are a part of a car accident policy. A minimum amount of medical expenses and rehabilitation payments are most often required to be carried in full by all drivers, especially if the accident was your fault.
Car insurance can be a tricky thing to buy. In order to get a good deal on a policy, it is best to get quotes from several different insurance companies. When purchasing auto insurance, always remember that your location, the make and model of your vehicle, your age and gender, the amount of miles you drive annually, and the amount of deductibles you opt to pay will all influence how much you pay for your premium. You may want to consult with an experienced auto insurance agent to help you determine the best coverage for your particular situation.