Auto insurance is provided by car insurance companies who offer different levels of protection to the driver of the vehicle, passengers, third parties and the vehicle in the event of an accident. It's down to you, however, to choose and purchase the right auto insurance policy for your needs.
Part of being a responsible driver is ensuring you have adequate auto insurance to cover you, your passengers and other drivers on the road in the event of an accident.
Your car was a big financial commitment for you. If you were involved in an accident and you didn't have insurance, do you have enough spare cash to buy another car outright, for medical bills, for legal bills, and for reimbursing a third party? The cost of a collision can soar into the hundreds of thousands of dollars. An auto insurance policy is far cheaper overall than paying for these costs yourself, and depending on the type of policy and coverage you purchase, can protect you financially, legally and medically in case of an accident.
- Third party or Liability Insurance
Comprehensive cover essentially covers you for any damage caused by other means, without a collision. For example, what if the neighbourhood kids hit a baseball through your windshield? What happens if there's a storm and a tree falls on your car? Liability car insurance coverage won't protect you or reimburse you for these kinds of accidents, but comprehensive coverage does. If you worry about external factors damaging your car, then comprehensive coverage may be the type of car insurance you need.
Collision coverage - covers you and your car in an accident.
- Full Coverage
Full coverage can include comprehensive car insurance cover and collision cover which offers you, your passengers, and your car protection in case you are involved in a road accident.
Comprehensive coverage - pays out if you sustain damage to your vehicle in an event that wasn't a collision with another vehicle.
Your insurer will pay to have your vehicle repaired or pay the cash value of the vehicle if it cannot be repaired. Comprehensive cover provides protection for your car in the event of damage by fire, theft, weather or vandalism, too.
- Damage caused by another person e.g. vandalism and theft
Under-insured motorist coverage - helps with expenses if you are involved in an accident with someone who doesn't have a sufficient level of insurance to cover the damage caused to your vehicle.
- Under-insured /Uninsured Motorist Coverage
This might be offered as a policy extra that protects you in case of a collision or accident involving an under-insured or uninsured driver. Your insurance company will pay out a sum of money to cover damages and will attempt to recuperate their losses from the at-fault party through other means.
It is common practice for the person who was at fault to pay. If they have a car insurance policy their insurance company will pay for any damage caused. If they don't have adequate insurance, who pays depends on what level of coverage you have, such as under-insured/uninsured motorist cover.
These are useful added extras that are usually included with comprehensive insurance policies. Many insurers will provide towing and labor services built in to your policy, as well as paying the cost of hiring a rental car during the period that your car is off the road in the event of an accident.
When considering your deductible, remember that the top amount comprehensive car insurance coverage pays out in the event of a serious accident or damage is the total, current cash value of your car. Therefore, if your vehicle's cash value is a similar amount to your insurance deductible (your car may be old or worn out), comprehensive coverage might not be the best auto insurance policy for you.
Your auto insurance policy protects you in case of an accident, but it is entirely up to you which level of coverage you want to purchase above and beyond what is legally required in your state. Consider how often you use your car and what you use it for. Don't choose the cheapest and most basic option to cut costs; think about what would happen and how your life would change if you were involved in a serious accident and you didn't have the best auto insurance policy possible for you.
Part of being a responsible driver is ensuring you have adequate auto insurance to cover you, your passengers and other drivers on the road in the event of an accident.
Your car was a big financial commitment for you. If you were involved in an accident and you didn't have insurance, do you have enough spare cash to buy another car outright, for medical bills, for legal bills, and for reimbursing a third party? The cost of a collision can soar into the hundreds of thousands of dollars. An auto insurance policy is far cheaper overall than paying for these costs yourself, and depending on the type of policy and coverage you purchase, can protect you financially, legally and medically in case of an accident.
- Third party or Liability Insurance
Comprehensive cover essentially covers you for any damage caused by other means, without a collision. For example, what if the neighbourhood kids hit a baseball through your windshield? What happens if there's a storm and a tree falls on your car? Liability car insurance coverage won't protect you or reimburse you for these kinds of accidents, but comprehensive coverage does. If you worry about external factors damaging your car, then comprehensive coverage may be the type of car insurance you need.
Collision coverage - covers you and your car in an accident.
- Full Coverage
Full coverage can include comprehensive car insurance cover and collision cover which offers you, your passengers, and your car protection in case you are involved in a road accident.
Comprehensive coverage - pays out if you sustain damage to your vehicle in an event that wasn't a collision with another vehicle.
Your insurer will pay to have your vehicle repaired or pay the cash value of the vehicle if it cannot be repaired. Comprehensive cover provides protection for your car in the event of damage by fire, theft, weather or vandalism, too.
- Damage caused by another person e.g. vandalism and theft
Under-insured motorist coverage - helps with expenses if you are involved in an accident with someone who doesn't have a sufficient level of insurance to cover the damage caused to your vehicle.
- Under-insured /Uninsured Motorist Coverage
This might be offered as a policy extra that protects you in case of a collision or accident involving an under-insured or uninsured driver. Your insurance company will pay out a sum of money to cover damages and will attempt to recuperate their losses from the at-fault party through other means.
It is common practice for the person who was at fault to pay. If they have a car insurance policy their insurance company will pay for any damage caused. If they don't have adequate insurance, who pays depends on what level of coverage you have, such as under-insured/uninsured motorist cover.
These are useful added extras that are usually included with comprehensive insurance policies. Many insurers will provide towing and labor services built in to your policy, as well as paying the cost of hiring a rental car during the period that your car is off the road in the event of an accident.
When considering your deductible, remember that the top amount comprehensive car insurance coverage pays out in the event of a serious accident or damage is the total, current cash value of your car. Therefore, if your vehicle's cash value is a similar amount to your insurance deductible (your car may be old or worn out), comprehensive coverage might not be the best auto insurance policy for you.
Your auto insurance policy protects you in case of an accident, but it is entirely up to you which level of coverage you want to purchase above and beyond what is legally required in your state. Consider how often you use your car and what you use it for. Don't choose the cheapest and most basic option to cut costs; think about what would happen and how your life would change if you were involved in a serious accident and you didn't have the best auto insurance policy possible for you.
About the Author:
Learn more about Auto Insurance Burlington. Stop by Justin McKenzie's site where you can find out all about Auto Insurance and what it can do for you.
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