Having your own car insurance is definitely handy but there are so many different programs and variants out there – how do you know that you have chosen the right coverage? Wait, what coverage? What does it mean by the various types of coverage? To prevent further mistakes and misunderstanding, you should know the basic facts about the car insurance.
Understanding the Different Types of Car Insurance Coverage
Most people have misunderstood the concept of car insurance by thinking that everything is just the same. However, you should know that there are different coverage and programs for different activities or events. For instance, there is a coverage for accidents only so in the event that your car is stolen, your insurance won’t cover for it. Another example, there is a coverage for the cars that may be damaged during vandalism actions or riot. If you have this coverage only and you are involved in a car crash, your insurance won’t cover for it.
In the general sense, there is some of the basic car insurance coverage:
- Liability coverage. This coverage itself is divided into two types: the personal property and bodily injury. This coverage basically will cover for your expenses if you are considered responsible (liable) for the accidents. The personal property will pay for any damages happening to the personal property while the bodily injury will pay for the medical bills and personal injuries.
- Collision coverage. If you are experiencing crash, this will cover the repair cost to YOUR vehicle –whether it hits another vehicle or fixed objects like phone pole or lamp post.
- Comprehensive coverage. This is also known as ‘Other than Collision’ coverage that will pay off your expenses besides accidents. If it involves theft, hail, floods, vandalism, fire, or vandalism, this is the coverage to choose.
- Underinsured or Uninsured coverage for motorists. In the event you are involved in an accidents with another motorist who doesn’t have insurance and they are responsible for the accident, this coverage will pay for your expenses