Even though many states make it compulsory for drivers to have auto insurance, there are instances when people don’t know much about auto insurance. In fact, every driver is a little unaware of auto insurance policies when he is picking one for the first time. It does not matter where you live, what type of vehicle you drive and how safely you drive. Getting insured is a wise decision. Some people might believe that auto insurance is all about covering expenses for the damages done to a car. But an auto insurance policy is meant to much more than that.
Defining Auto Insurance
Automobile insurance as the name suggests is your way of protecting your vehicle. However, auto insurance coverage includes much more than that. You cover the expenses that you might incur in case of an accident in fixing your car, the expenses that go out of your pocket for your medical care, legal expenses etc. In short, your auto insurance covers you not only for the damage done to your property but also the injuries you suffer physically and any liabilities that you might be under when you are involved in an accident. Even when you are at fault your automotive insurance covers your expenses. You can take auto insurance price quotes online.
There are several types of auto insurance policies. Just imagine all the bad things that can happen to your car, to you as a driver in your car and to a third party that gets hit. You will realize what these different types of car insurance policies would cover. People don’t often go for a particular type of coverage. Rather they choose to go for a combination of different types of coverages in order to protect themselves and their properties from the most possible dangers.
Different Types of Auto Insurance That Exist
The first that you need to understand is the bodily injury liability insurance. This is the insurance that can save you from some of the most dangerous events in your life. You are involved in an accident, it is your fault and the other party that you have hit with your car has received some severe bodily injuries. In this type of accident your insurance will pay for the medical expenses of the victim party. Why we have put it on top of our list is because severe injuries often push people to sue other parties and that’s when things get really worse.
Another type of coverage that you can include on your automotive insurance policy is the property damage liability. In this type of insurance policy your insurance company would pay for the expenses that are incurred by the party you have hit with your vehicle for fixing their vehicle. In addition to the vehicle repairing costs your policy might also include coverage for other damages. These damages may include public and other private property such as poles, fences, buildings, etc.
If you live in a town where there are a lot of cases of stolen cars every week and month, you should go for comprehensive insurance. This one protects your vehicle from theft and any damages that are natural in nature and are not the results of accidents. You will be given the reimbursement if your car is stolen. You will also be compensated by your insurance company if your car gets damaged due to hailing, storm, tornadoes, fire, vandalism, etc. Such auto insurance coverage often includes deductibles wherein you have to pay a certain amount of the expenses before your insurance company pays for it. Your deductibles decide the size of your premiums as well.
Collision coverage is clear from the name. It covers the expenses that you will have to make to fix your vehicle when it has been damaged due to some collision. Then there is PIP – which stands for personal injury protection – this type of protection is for you and the people on the insurance policy when they are injured in an accident. The medical costs are paid and funeral costs and lost wages are also covered.
It is best that you get into the details of these different types of insurance policies and then figure out which ones would be best for you. Don’t fall for anything that you think you don’t need. Of course, your choice of the right insurance company also matters a lot in how things go in your case. To make sure that you start on the right foot with your automobile insurance you should go look up for auto insurance price quotes and you will find websites that have insurance plans available at affordable rates for everyone who needs automobile insurance.