Before buying a vehicle, you should know the responsibilities of a car owner and driver. One of these is buying the right auto insurance. Vehicle insurance should not be taken for granted – it will protect you from financial losses and liabilities should an accident occur.
In most states, car insurance is required. Aside from financial protection against damages and liabilities arising from accidents, some types of car insurance also protect you for damages caused by natural disasters, freak accidents, theft, and the like.
Understanding the Types of Insurance Coverage
When purchasing vehicle insurance, there are different types of coverage designed to protect you financially. Different types of insurance coverage target a number of concerns. Some focus on health and medical expenses, others focus on damages to property, while others can provide assistance especially when the driver at fault is not insured. The types of insurance coverage include:
- Liability Insurance
This will cover the other party’s expenses including medical expenses and damages to property.
- Comprehensive Insurance
This will cover expenses due to damages caused by non-collision circumstances such as damages caused by weather, freak accidents, and those not covered by collision insurance.
- Collision Insurance
This will cover damages caused by collision-related accidents whether with another vehicle or non-vehicles such as trees, walls, gates, and other stationary objects. This can also cover accidents that do not involve any objects.
- Uninsured or Underinsured Motorist Package
In case the driver is at fault and he cannot shoulder any of the expenses incurred because of the accident, this will cover all the damages and medical bills that the other driver has no capacity to shoulder.
- Personal Injury Protection
This coverage will take care of you and your passengers’ medical expenses regardless of who is at fault. This covers medical bills, including those that are not covered by health insurance. This can also assist those who do not have any type of health insurance.
Other Things to Take Note of When Buying Insurance
- Cheaper insurance often means lesser coverage.
Yes, we all want to reduce our expenses, but when buying insurance, we should not skimp on spending especially if we will benefit from it in the long run.
- You may be eligible for discounts.
Do note that if your car has safety features and alarms, this can lessen your premium. You can also get discounts when you purchase other types of insurance policies such as home and health insurance from the same company. The more policies your purchase, the higher your discounts.
- Some cars affect your monthly insurance premiums.
If the car make and model that you want is one that thieves love to target, then you’re better off choosing another car. Otherwise, be prepared to pay a higher premium.
When buying auto inurance, don’t forget to compare several different plans before making a decision so you can pick one that suits your needs and budget.