Car insurance (also known as vehicle insurance, motor insurance or auto insurance) is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise therefrom. Car insurance may additionally offer financial protection against as theft of the vehicle, and against damage to the vehicle sustained from events other than traffic collisions, such as keying and damage sustained by colliding with stationary objects. The specific terms of car insurance vary with legal regulations in each region.
What are the types of car insurance coverage?
- Bodily Injury liability provides protection if you injure or kill someone while operating your car. It also provides for a legal defense if another party in the accident files a lawsuit against you.
In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily Injury Liability covers injury to people, not your vehicle. Therefore, it’s a good idea to have the same level of coverage for all of your cars.
- Property Damage liability protects you if your car damages someone else’s property. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object.
- Uninsured Motorist coverage pays for your injuries caused by an uninsured driver or, in some states, a hit-and-run driver. In some states, there is also Uninsured Motorist coverage for damage to your vehicle.
Given a large number of uninsured motorists, this is very important coverage to have, even in states with no-fault insurance
- Medical Payments, no-fault or Personal Injury Protection coverage usually pays for the medical expenses of the injured driver and passengers in your car. They may also be coverage if you are injured by a vehicle as a pedestrian.
- Comprehensive physical damage coverage pays for losses resulting from incidents other than collision. For example, Comprehensive car insurance covers damage to your vehicle if it is stolen; or damaged by flood, fire or animals.To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. If you have an older vehicle you may want to consider whether you need this coverage as it is normally limited to the cash value of your car.
- Collision coverage pays for damage to your car when your car hits, or is hit by, another vehicle or other object.
To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. If you have an older vehicle you may want to consider whether you need this coverage as it is normally limited to the cash value of your car.
Car insurance is mostly compulsory in various countries of the world today. Road accidents are commonplace hence the urge to grab a car insurance package.