What Every Car Insurance Policy Holder Should Understand


Need to buy drivers insurance coverage for your vehicle? If you are planning to purchase a new car you should have a new auto insurance policy effective from the date you take ownership of a new vehicle.

What’s the grounds for having Auto Insurance?

If you ever get into a wreck where people are injured and there is damage to vehicles having vehicle insurance will protect you against the financial losses that would accrue Damages that add up from an accident will need to paid by the driver at fault. Those costs could be quite substantial and could easily exceed the value of the vehicle.

Keep in mind that with vehicle insurance there are many types of coverage within the policy. Have a good understanding of each of those aspects before purchasing your policy.

Auto Car Insurance Coverage Types:

1. Bodily Injury / Liability Coverage:

You are protected against any liability up to a specified amount in your policy if you have Bodily Injury / Liability Coverage.

2. Medical Payments / No-Fault / Personal Injury Coverage:

Your passengers in the vehicle are insured with this type of coverage called Personal Injury No-Fault Medical Payments Coverage. Make sure you have it because it covers your friends and family for any injuries they sustain during an accident. On top of that it will cover any injuries you have as well.

3. Comprehensive Physical Damage Coverage:

Taking a look at comprehensive coverage it basically insures your car from any damage according to what is elaborated in the insurance policy but as an example it covers fire (natural or unnatural), theft of a stolen vehicle, being vandalized, if it was in a flood, etc..

4. Collision Coverage:

Let’s say that you were in an accident but it was undetermined who was at fault. Well, with collision coverage it really does not matter as it will insure any damage done to your vehicle regardless so you can bring it in and get it fixed either way and restore it to its original condition in most cases.

5. Property Damage Liability Coverage:

When you accidentally damage another person’s property (does not have to be car) property damage liability coverage will provide protection. If the other party files a lawsuit for the impact due to the damage your property damage liability coverage will also cover expenses from that too.

6. UnInsured Motorist Coverage:

Depending on the circumstances it will cover your injuries in the case of an uninsured driver or hit-and-run driver. May also provide coverage if the driver at fault is underinsured (has drivers insurance but not sufficient coverage).

The automobile insurance agency that you deal with may also offer many more options for other types of coverage that you can add on to your car insurance plan:

7. Mechanical Breakdown Insurance

There is another option call Mechanical Breakdown Insurance and if your car breaks down for any reason during its normal lifespan this will take care of the expenses that will be needed to fix it and get it up and running normally again.

8. Rental Reimbursement

Rental Reimbursement helps provide you with a substitute rental car when your car is being fixed after a car crash.

9. Emergency Roadside Service

Inexpensive addition your auto insurance policy which will provide you with roadside assistance including emergency towing, car lockout service, gas, towing. Your auto insurance company may or may not have these additional options available to you for your policy. It will vary from insurer to insurer..

Are there ways to get you the most savings for your car insurance?

If you are looking for cheap auto insurance coverage your best option is to go to a insurance quotes comparison site and compare quotes side by side.

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