Just got your wheels? Congratulations.
As great as it is to finally own a car, before you can blast the music and hit the open road. While you are at it, there’s an adult step you have to take which is buying car insurance.
You could think of it as a superhero cape for your car. It results in peace of mind knowing you are protected and that you can protect others on the road if things go as planned.
Knowing that, we have put together an overview of all the different kinds of vehicle insurance you can purchase.
This will help ensure you’re able to get on the road with your new wheels.
What is vehicle insurance?
Vehicle insurance provides security for your car either new or old. In events of accident, thefts, damages, or loss (if it happens), the insurer is in charge of making sure you do not bear the loss alone.
This is made possible by paying an agreed monthly or yearly fixed deposit bill. It’s usually based on an outlined policy that is legally binded.
Vehicle insurance helps when the unexpected happens. That’s why vehicle insurance is a must have by anyone who is a car owner.
Types of Vehicle insurance
There are up to six main types of vehicle insurance. They are as follows:
- Personal injury protection
- Collision coverage
- Uninsured and underinsured motorist coverage
- Auto liability coverage
- Comprehensive coverage
- Medical payment coverage
Personal injury protection
Do we all realize what if you or someone in your care got injured in an accident? Medical Payments cover hospital visits, surgery and X-rays. Although, this coverage varies.
Collision coverage
Got in a fender bender? Collision coverage can help. If you hit another car or something like a fence, it covers your own costs to repair or replace your car.
Uninsured and underinsured motorist coverage
Imagine someone hitting you and they don’t have insurance. Uninsured driver compensation can help pay for your medical bills (and possibly even your car repairs in some states).
Ever injure someone who doesn’t have enough insurance to cover all of your costs? That’s where underinsured motorist coverage comes in (depending on your state’s laws). It can help someone who doesn’t have enough insurance to pick up the tab after an accident.
Auto liability coverage
Everyone needs car insurance, and that’s where liability coverage comes in. In most states (at least the minimum amount) is required by law. why? Because it helps pay for expenses if you have an accident.
Comprehensive coverage
Ever worried about your car being stolen, electrocuted or damaged? All in all, it can help. It also helps if you pay for your car to be repaired or replaced (up to its actual value, minus deductibles) in certain accidents (which are not caused by another vehicle).
What does car insurance cover?
Car insurance protects you financially in the event of an accident or any other car-related accident. Here’s a breakdown of the main coverage.
- Bodily Injury Liability: If you accidentally injure another person, it covers medical bills and other expenses.
- Property Damage Liability: If you damage someone while driving, you are covered for repair or replacement (like other cars). Car insurance protects you financially in the event of an accident or any other car-related accident.
What does car insurance not cover?
Car insurance exists to help you financially after a car-related accident. However, there are some things it doesn’t cover. Here’s what car insurance will not cover:
- Common damage: Scratches and scratches from normal driving or mechanical failure are not covered.
- Intentional damage to your vehicle: Insurance will not cover repairs if you intentionally damage your vehicle.
- Drivers under the influence (DUI): Accidents caused by drunk or drugged driving are generally excluded.
- Racing or other dangerous activities: Using your vehicle for racing or other high-risk activities can void your coverage.
- Personal Items: If your laptop or other valuables are stolen from your car, they are generally not covered by auto insurance (consider renters or homeowners insurance for that).
- Tickets and Fines: Parking tickets, speeding fines, and other traffic violations are your responsibility.
- Some changes: A complete change in vehicle may require an additional fee or even your existing policy may be void.
Conclusion
So, there you have it. Now you are armed with the knowledge about the various car insurance options available.
Remember that car insurance is essential for responsible car ownership. It protects you financially from unexpected events and ensures you can drive in peace knowing you and others on the road are covered.
Get quotes from reputable car insurance companies, compare options, and choose the coverage that fits your needs and budget. This is the best way to assure yourself when you are driving on the road.