Legally, a car insurance is compulsory for you, and with the appropriate level of cover, offers financial coverage in case your vehicle experiences damage.
It will also make provision for injuries suffered by other drivers, pedestrians and passengers that are with you. Accidents are sometimes unpreventable, so it is always safe to know you are protected should you find yourself in one.
Having car insurance policy can consist of various types of coverage. To conclude on what you want to purchase, it is vital to do your findings on the options available to you, which kinds of coverage you’ll need and how several kinds of coverage actually work.
Bear in mind that your insurance policy has got these people covered – You, the licensed members in your house who are listed on the policy, and basically everyone else you have permitted to use your car.
You are expected to have a minimum amount of auto-insurance to cater for the expenses that come with damages or injuries caused by your vehicle in accidents.
What is car insurace policy?
Car insurance is a contract between you “insured ” and the insurance company “insurer” that they protects you against financial loss in the event of an accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy.
Car insurance provides coverage for:
Property: protect you from damage or theft of your car
Liability – your legal responsibility to others for bodily injury or property damage
Medical – the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses
The minimum car insurance requirements vary but i have listed the types of coverage that is key to identify with .
- Liability Insurance
- Personal Injury Protection Or Medical Payments Insurance
- Uninsured Or Underinsured Motorist Coverage
1 Liability Insurance – This insurance settles the financial expectations for all damages and injuries you inflict on others in unfortunate and unpredictable accidents.
The liability for injuries on human bodies settles the hospital bills of the injured, the liability for damage on properties settles repair bills or will be responsible for expenses that come with replacements of the automobiles or properties.
Your car insurance will pay up to the limits on the policy, you’ll have to make personal payments if its more than the stipulated limits.
2 Personal Injury Protection Or Medical Payments Insurance – Liability Insurance indemnifies others. For medical expenses of your own, you might want to look at Personal Injury Protection Or Medical Payments Coverage, this may already be handy as part of your car insurance quotes.
3 They settle all hospital expenses you or others in your car might incur if you are wounded in an accident. They can also take care of burial bills.
Coverage works differently depending on your location. PIP settles lost wages and the expenses that accompanied replacing services usually done by the injured person.
4 Uninsured Or Under-insured Motorist Coverage – Even if liability insurance is needed, there are several drivers on the road that are not insured.
You can take them to court when they hit you after reckless driving, but they might not have the cash to indemnify you.
In cases like this, uninsured motorist (UM) coverage can be very useful. It settles all your hospital bills as long as you got your wounds from an accident a driver who is not insured caused.
There is another type almost identical to it – Under-insured motorist (UIM) coverage – It pays if the person driving does not have the liability insurance that is good enough to settle your hospital bills.
This coverage begins to be effective as soon as the cost is more than what the other driver can pay. One other kind of coverage – uninsured motorist property damage (UMPD) – settles repair or replacement of your car’s bills if a driver that is not insured damages your car. This coverage is kind of scarce though.Collision And Comprehensive Coverage ,
This coverage is responsible for fixing your vehicle or refunding you for its present value if the damage cannot be repaired. Most countries do not make this coverage a compulsory one, but your lender will need it as long as you paid or you are renting out a vehicle.
Collision insurance indemnifies you if your vehicle crashes into a non living thing or some other vehicle, or if it somersaults.
The Comprehensive insurance lets you cash out if your vehicle is nowhere to be found after theft, or spoil by anything but a car accident. This includes storms, excessive water from floods, fire explosions, earthquakes, vandalism e.t.c. Encounters with wild animals are covered too if that was your unfortunate experience.
Comprehensive and Collision normally go together plus they contain a deductible, which is the amount of the insurance claim you’ll have to settle before your insurance settles you. The higher the deductible you select, the lower the amount to be paid for insurance that has to do with collision and comprehensive coverage.
Reasons Why A Car Insurance Is Vital
It’s essential since it takes care of your expenses for unpredictable, future damages or injuries. All road users in a vehicle have to be insured against their liability to others.
Insurance is also a reliable money support if the criminals steal your vehicle, or if the miscreant is a fire explosion or those that engage in car vandalism. There are are some special cases when you do not need an insurance for your vehicle, e.g, if you have declared your car off the road.
Process Of Obtaining A Car Insurance Policy
- Be fully aware of your country or state’s minimum insurance requirements.
- Be on the look out for your personal financial state compared to the required insurance and think about if you need to raise your limits to safeguard your assets.
- Analyse the status of your driving record — If you have any unfinished tickets or points on your driver’s license?
- Get information on your present coverage to know how much you will be parting with.
- Get competing quotes from insurance websites and individual organisations you are interested in.
- Follow-up the calls made to insurance companies to obtain more info about coverage.
- Know about discounts.
- Ensure the insurance company is one you can rely on by visiting your location’s insurance department website, checking out their consumer surveys and chatting up family and friends.
- Cross check the policy before concluding.
- Do not forget to cancel your previous policy should the case you enter into new policy ,you can also ask for re-insurance policy