For a first-time car buyer, there is a lot to take in, the thrill that comes with getting a new car is huge.in most cases, auto insurance is not a topic many people consider to learn or understand but for every car owner this is essential. . auto insurance vary in types and the various types of car insurance coverage available should be something you have some knowhow on to make the right decision when choosing the best type of car insurance.
You need an auto insurance because
You need protection from
- Animal damage
- Bodily injury even to third parties
And so many other perils.
You can’t afford to drive a car without an auto insurance and there is no government that as well can allow that. Now that you are aware auto insurance is a must-have, what are the types of auto insurance are available.
There several types of car insurance available nearly everywhere globally and they are
- Comprehensive insurance
Comprehensive insurance is one of the most popular insurance covers. It’s a policy that provides an extra level of coverage in an instance where an accident happens and regardless of who is at fault, you get to be compensated. It’s the highest level of cover and usually helps in the minimization of out of the pocket expenses. In many cases, a comprehensive car insurance policy helps in repairing your car or replacing it with a new one, when your car damages others or property, theft, fire damage, storm damage, flood damage among others.
- Third-Party Insurance
This is the most basic form of insurance and it’s usually the legal minimum requirement for a driver. It usually covers just injuries or damage to third parties. These might be injuries to passengers, animals, people, damage to property owned by others, and the passengers in your car injured due to your fault. Remember that a third party won’t cover the repairs for your own car or your own injuries or even the replacement cost when your own car is lost or destroyed by fire.
- Liability coverage
Nearly all US states require liability coverage, which they take it as a legal requirement when driving any car on a public road. Usually, the liability insurance helps to cover damages of property and injuries to others.
- Collision Insurance
When your car is damaged after an accident and you have collision insurance then this policy will help you in repairing your car or even replace your covered vehicle.
5.Uninsured Motorist Insurance
Some motorists usually break the law when they drive a car and they aren’t insured. This insurance policy comes in handy when you encounter an incidence with an uninsured driver or a hit and run accident since it covers you. In most cases, you will find this under the underinsured motorist insurance policy.
- Medical payments coverage
When an accident happens one of the most expensive costs one might incur is medical costs. With a medical payment coverage, it can ease the cost of the bill regardless of who is at the fault.
- Personal injury protection cover
When you have personal injury protection insurance cover then you are covered from loss of income or certain medical expenses that arise from accidents. Depending on what limit the policy can cover one can get up to 80% of the medical expenses.
- Gap Insurance
There is an insurance cover known as the Gap insurance which comes in handy when your car has been damaged beyond repair and it’s a total loss or when its stolen yet you owed a loan to the car dealer. Since cars depreciate value very quickly when the amount which the insurance settles isn’t enough then Gap insurance comes in handy.
- Towing and Labor Insurance
This is an insurance cover that is normally available when you have a comprehensive car insurance policy. If you take this separately it usually covers the cost of towing and labor that was incurred during the repairing of your vehicle.
- Rental reimbursement insurance
There is nothing that can bring extreme stress to one’s mind such as the cost of repairing a vehicle that you rented. The good thing is there exists an auto insurance cover known as the rental reimbursement insurance which covers the cost of the car when an accident has occurred and the rental car cannot be driven anymore.
- Classic car insurance
For those individuals who have a collection or love vintage and classic cars, they are lucky because there is classic car insurance designed for their needs.
- Bodily injury liability
It is not always that the other person will be at fault, sometimes it might be you who is at fault. When you get involved in an accident and there happen to be casualties where their injuries to the other party bodily injury liability will cover for medical expenses, lost wages, pain, and suffering. The cover will also cover for anyone else who might be driving your car with your consent.
- Property damage liability
When an accident happens in most cases you might find that you have caused some damage to personal property. When such is the case property damage liability will cover the cost of the damage and shield you from being liable. When we talk of property we basically refer to the car that you just hit, fences, lamp posts, mailboxes, and so forth.
- Medical payments coverage (MPC)
When you have medical payments coverage then you are covered from costs of treating injuries that were caused by the accident and also the cost of treating the passengers that were on board your vehicle at the time of the accident. Medical payments cover medical bills resulting from accidents. when you’re a pedestrian medical coverage might also cover you when a car hits you.
Now that we are talking about auto insurance one of the most common questions we get is what is the difference between comprehensive car insurance and Third-party policy. Well, a comprehensive car insurance cover will both your car and damages that have been done to property and other cars. While a third-party auto insurance cover will only cover for damages that were done onto other cars and property.