Auto Insurance
It is always advisable to have an auto insurance policy for your vehicle. The auto insurance policy helps you in protecting against any financial losses incurred as a result of an accident-involving the vehicle you are driving. All you need to do is to apply for an auto insurance in which you have to pay a certain amount of monthly premium. In case of an accident, as per the terms of your insurance policy the insurance company pays for the losses. Most of the insurance policies are for six months to a year. After this period is over, you can renew your policy.
Coverages Offered by Insurance Companies
An auto insurance company generally offers six types of coverages. These include-
Property Coverage: This type of coverage includes any losses incurred to the property of another person through your vehicle. Usually, the property is a vehicle but sometimes it can be lampposts, fences, or buildings.
Bodily Injury Coverage: This type of coverage covers any type of bodily injury occurred to someone else through your vehicle. It is always advisable to opt for a policy offering this coverage because if you are involved in a serious accident then you may be sued for a large amount of money.
Personal Injury Coverage: An auto insurance policy also offers personal injury coverage under which the policyholder receives payment for any treatment of injuries to the policyholder. In some conditions, it also covers funeral costs in case of a death.
Uninsured and Underinsured Motorist Coverage: Uninsured auto insurance coverage pays for any type of injury or damage occurring to a person through an uninsured vehicle. Underinsured coverage pays benefits to those persons who are hit by a vehicle that holds insufficient insurance to pay for the losses. This coverage also applies to pedestrians if involved in an accident.
Collision Coverage: This type of coverage includes any type of damage occurring to your vehicle in case of collision with other vehicles or objects. If the collision has occurred due to the fault of the policyholder then this coverage applies for the damage incurred by the vehicle of the policyholder. In case of other person's fault, the insurance company recovers damages from the other person's insurance company for the loss or injury occurred in the collision.
Comprehensive Coverage: This auto insurance coverage covers for any losses incurred to your car other than collision with other cars or objects, which includes fire, explosion, earthquake, riots, or flood.
The collision and comprehensive coverage are recommended for persons owing car loans. They are advised to carry on these two types of coverage until the loan is paid off.
Things to Know Regarding Auto Insurance
While offering you an auto insurance policy, insurance companies also have a look at your driving history. Moreover, these companies also consider the sort of car you own and then determine the amount of premium paid by you. Basically, luxury and sports cars are the most expensive when it comes to being insured, as there is a high degree of risk of collision, theft, or injury.
Insurance rates are on a rise regularly. Therefore car owners are always looking out for the best auto insurance discounts offered by insurance companies.