Car insurance

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Car insurance is an agreement between an insurance company and the owner of the car in which the owner pays a premium on regular basis and the insurance company is bound to pay for the damages done to your vehicle due to an accident. Though some of the people think it as a painful experience due to the rate of the premium they have to pay but in reality is a source of relief in case of an accident as the prices that you pay out of your own pocket even for the minor repairs is too much sometimes the repair work costs you as much as a new part of your car. Every wise person should buy a car insurance plan as soon as he buys a car.

There are several different car insurance plans for you to choose from according to your affordability and the make and model of your vehicle. Different car insurance plans offer different types of coverage and you can select the eons that you require for your vehicle. The coverage that can insurance companies offer include

  • Coverage of property damage
  • Liability coverage
  • Physical injury liability
  • Theft and fire coverage
  • Collision coverage
  • Comprehensive coverage
  • Physical damage coverage
  • Personal harm protection
  • Rental car insurance
  • Underinsured driver coverage
  • Uninsured driver coverage
  • Pay per mile coverage
  • Gap insurance

 

Car insurance
Car insurance

Liability Coverage

It is the type of insurance plan that you buy not for your own protection but that of the other people who may get affected by mistakes done on your part while driving a vehicle. If you are found guilty of wrong driving and somebody gets injured by you or his car is damaged by you, the expenses for the accident both medical and vehicle repair will be paid by the insurer.in most of the state’s certain amount for liability coverage is necessary for a permission to drive.in some states of USA you are allowed to skip the liability coverage by giving the authorities the proof of your income according to which you can afford to pay the liability coverage out of your own pocket whenever it is needed. The facility known as liability insurance covers you when you are driving your own car or that of a friend with his permission.

Property Damage Liability

As the name of the insurance plan tells us this type of insurance is not available for the damage done to your property, it is the plan that covers the damages done by you to somebody else’s property. There are several incidents in which you hit a car that is already properly parked in trying to park your own car, in some cases people drive when they are drunk and may hit someone else’s car or garage door  or even a boundary wall or fence. These are all the damages that your insurance company will have to bear if you are found guilty for damaging other people’s property. There are many factors that need to be thought about before determining what type of damages are exactly covered by the insurance company. This type of insurance plan may include a number of deductibles. The amount of premium you will have to pay depends upon the coverage you have selected for the insurance plan.

Bodily Injury Liability

If you are found guilty in a road accident in which physical damage has been done to the people of other party then this is the insurance plan that may come to your recue. It has been observed several times that due to a drivers negligence people do not only get physically injured they in some cases have to suffer from a disability and in very severe accidents you might become the cause of another person’s death due to head or neck injury. Bodily injury liability insurance is the plan that gets activated if you are found at fault in an accident that has caused physical damage to the other party. In these cases the payment of expenses incurred on the treatment of injuries as well as those on counseling and rehabilitation is the duty of the insurer. This type of insurance provides the affected people with expenses for physical therapy as well as the work time lost due to injury. In case of a death in road accident the funeral and burial are also paid by the insurance company. The company has to pay for pain and suffering caused by you. This type of insurance plays a vital role in your financial well-being especially in case if you are a careless driver. The expenses incurred on treatment of injuries are almost next to impossible to pay from your own pocket.

Comprehensive Coverage

It is another unique type of coverage that you get from your insurance company for the damage done to your car but not as a result of being hit by another vehicle or a road accident. Comprehensive coverage as its name tells, is a complete coverage for damages done to your car other than road accidents. There are several ways that a car can get damages, if you park it outside it can be badly affected with flood waters or a physical damage to your car may occur due to heavy hail-storm or an earthquake. Sometimes a heavy thing may fall on your parked car and break the windscreen or become the cause of big dents. The non-traffic damage done to your car is mostly covered with comprehensive coverage .The comprehensive coverage even works if you hit an animal. There are millions of people who purchase comprehensive coverage plan with some other supplementary plans to cover the expenses for road accidents.

Collision Coverage

Collision coverage is the type of car insurance in which the damages done to your car are taken care off by the insurance company in case your car collides with another car, a fence,a building or any other stationary thing. In some cases the damages done by flipping over of the car are also covered in cases where the car is totally demolished the company may replace your car altogether but the reimbursement that you will receive will be that of the current value of the car not the price at which you bought.

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