Liability coverage
Liability coverage protects you against the financial consequences of
bodily injury as well as physical damage to property relating to other
people. Bodily injury liability would cover medical care expenses,
damages for pain and suffering as well as for lost wages. Physical
damage, coverage would include damage to other people’s cars as well as
their property. Legal expenses and court costs are also reimbursed. In
many states, the law lays down the minimum liability coverage that you
should carry although nothing stops you from buying more insurance if
you feel that it is required.
Comprehensive insurance
In comprehensive insurance, the insurer pays for any damage or loss on
the insured car that is not the result of an accident. Coverage will
include damage caused by fire, adverse weather conditions such as hail,
damage caused by vandals and theft.
Underinsured/uninsured motorist
This coverage pays for damage to your car and your person when the
accident is caused by a motorist who either has insufficient insurance
or no insurance at all.
Medical coverage
Medical coverage pays the expenses caused in an accident regardless of
whose fault the accident has been. Some states require what is called
Personal Injury Protection insurance which pays medical expenses for the
driver who has been insured regardless of fault for the accident or
collision.
These are examples of some types of coverage and most car insurance
policies will combine several types of coverage depending on your
requirement. While many states will have some kind of minimum coverage,
there is no reason why you should not purchase more insurance if you
think it is required. For instance, if you are unable to replace your
car, you can consider adding comprehensive insurance and collision
insurance to your existing car insurance cover. Your ability to afford
premiums will determine the extent of coverage that you can purchase.
You should also be familiar with the term “deductible” which is also
known as an “excess”.
This is a fixed contribution towards damages that
you must pay for every single insurance claim before the insurer pays
out. The excess can be a compulsory excess in which the insurer will
stipulate will stipulate the minimum amount and this will vary from
insurer to insurer. The excess can also be a voluntary excess pay you
agree to pay more than the compulsory excess stipulated. The result will
be a reduction in your premium because the risk of the insurer is
reduced.
Probably the biggest though sometimes underestimated benefit of
getting adequate car insurance is the peace of mind that it brings you.
Being free of worries about financial losses because of liability,
medical expenses, repairs to damage to your car and is itself worth the
premiums that you pay. You can focus your attention on the road and
driving properly instead of being bothered by the niggles at the back of
your mind. Naturally, the benefits of car insurance must come to you
at an affordable price.
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