Car Insurance Covers Damage Caused by Crash

Car insurance is insurance on motor vehicles, particularly for automobiles, trucks, and motorcycles. Its main function is to offer financial protection against bodily injury or damage resulting from road accidents and from liability which may arise out of such accidents in a car. Car insurance has become very common and it is necessary to have one. However, a lot of people are unaware of its importance and also do not know how to get a suitable policy. In this article, we will be discussing all the important things you need to consider before deciding on buying car insurance.

Car Insurance

It is a must to have comprehensive car insurance which offers complete coverage for both personal damages and property damage of your vehicle. It is also a must have collision insurance that offers maximum coverage against damage due to collisions with other vehicles or objects. It is important to note that the cost of insurance or premium depends upon various factors like type of vehicle, driving history, mileage, make and model, and usage. If you are buying a used vehicle, then the price of insurance also will be a bit higher. If you want to save some money in purchasing insurance for your vehicle, then you should consider getting a liability only insurance.

There are two parts in a comprehensive insurance which provide financial protection in case of total losses caused due to collision with other vehicles or objects. One is the deductible, which you have to pay before the insurer would pay the rest of the claim amount. The second is the total cost of repairs to your vehicle after deducting the deductible amount. This is called the total cost of insurance or premium. Your choice of deductible will affect the amount you have to pay as premiums.

There are several types of insurance offered by reputed insurance companies and most of them offer a comprehensive coverage for your vehicle and also offer breakdown coverage in case you need it for some unforeseen reason. Comprehensive insurance will not only cover for damages to your vehicle but also for third-party liabilities. It is mandatory to have this type of coverage for all vehicles and it is one of the insurance coverages that most of the insurers will ask you to purchase when you purchase a new vehicle or a used one. However, it is possible for you to reduce the coverage to a bare minimum if you do not require that much coverage.

For the consumers who do not need to have comprehensive coverage, there is a special type of insurance known as personal injury protection or PIP. It provides coverage for certain medical and legal expenses incurred in case you meet with an accident. You can get PIP for your vehicle as a form of insurance to protect you in case you meet with an accident. Some of the states do not require you to have PIP, however, if you drive a car that is over 25 years old, you will need to have it. Some insurers might offer this kind of insurance as a rider to your regular insurance policy.

Auto insurance covers damage to your vehicle and covers third-party liabilities, if you meet with an accident. This form of insurance is also referred to as bodily insurance and it pays for medical bills and for other things that may result from an automobile accident. This form of insurance is required in each state and most of the states demand that drivers have at least bodily insurance. This insurance helps you be prepared if you meet with an accident and helps you pay for the medical bills of those who were injured or who died in the accident.