What is car insurance?
Car insurance is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle.
Regardless of whether you’re a new driver or just want to discover a more about the car insurance it’s good to begin with a basics. So, what is car insurance? Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle. It saves you from losing money in the event of incident covered by your policy. Instead of having to pay for repairs, replacement costs or medical bills by yourself your insurance provider will help you with the costs, of course depending on your coverage and limits you choose. You define coverage and limits at the time of purchasing the policy and based on that the monthly or yearly amount, you will have to pay, is calculated.
Types of car insurance in the US
There are different types of car insurance and it’s good to know the difference between them when purchasing for one.
In most countries it’s mandatory to have a liability coverage for each vehicle that is registered and is driving on public roads. It covers any property damages or damages for injuries resulting from an accident you caused, of course depending on the coverage and limits of the policy
Collision insurance may cover damage to your car after an accident involving another vehicle and may help to repair or replace a covered vehicle.
Comprehensive insurance can provide an extra level of coverage in the instance of an accident involving another vehicle. It may help pay for damage to your car due to incidents besides collisions, including vandalism, certain weather events and accidents with animals.
Uninsured motorist insurance
Uninsured motorist insurance can protect you and your car against uninsured drivers and hit-and-run accidents. This coverage is often paired with underinsured motorist insurance.
Underinsured motorist insurance
Many drivers choose to carry the minimum in liability coverage to save money, but this might not provide enough coverage. Underinsured motorist insurance can protect you in the event of an accident with a driver whose insurance is not enough to cover the costs.
Medical payments coverage
Medical costs following an accident can be very expensive. Medical payments coverage can help pay medical costs related to a covered accident, regardless of who is at fault.
Personal injury protection insurance
Personal injury protection insurance may cover certain medical expenses and loss of income resulting from a covered accident. Depending on the limits of a policy, personal injury protection could cover as much as 80% of medical and other expenses stemming from a covered accident.
Car value can depreciate quickly, so an auto insurance settlement might not be enough to cover the cost of a loan. Gap insurance may help certain drivers cover the amount owed on a car loan after a total loss or theft.
Towing and labor insurance
Available if you already have comprehensive car insurance, towing and labor insurance may reimburse you for a tow and for the labor costs to repair your vehicle.
Rental reimbursement insurance
Figuring out how to get around after an accident can be expensive. Rental reimbursement insurance helps pay for a rental car if your vehicle cannot be driven after an accident.
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