If you are searching for car insurance or are purchasing a new car, you’ll need to recognize the common auto owner’s insurance policies available. Specifically, car insurance coverage helps offer your vehicle, you, and your passenger protection in case of an accident. The several insurance coverage types include comprehensive coverage, motorist coverage, medical payments coverage, personal injury protection, and collision coverage. Depending on your locality and the regulations, it is mandatory to have some of this coverage while others are optional. Understanding each cover and each state’s requirements can help you select the cover appropriate for your situation. Below the different car insurance coverage types are discussed. The article also offers some tips on how to save on insurance car insurance.
Underinsured and uninsured motorist
With uninsured motorist coverage, if a driver hits you with no insurance cover, this coverage will help cover your medical bills and, depending on the policy, even repairs to your vehicle. On the other hand, an underinsured driver has car insurance but with liability limits, which cannot fully cover the resulting medical bills. In such circumstances, underinsured motorist coverage will be helpful.
It is mandatory in a majority of states to have vehicle liability coverage. By law, drivers must buy at least a minimum amount of liability coverage that the law itself stipulates. Typically there are two components in liability coverage.
The property damage liability component-This helps the payment of damages that you inflict to the property of another individual while you are driving.
The bodily injury liability components-If you cause an accident, this helps you in the payment of costs that are linked to the injuries of another person.
Personal Injury Protection
This coverage is only available in particular states. As is the case with medical payment coverage, personal injury protection helps cover your medical expenses in the case of an accident. In addition, Personal Injury Protection can cover other costs that have been incurred due to injury, including lost income and childcare expenses.
Medical payment coverage
If a vehicle is insured under this coverage and you are involved in an accident, this coverage will help you pay for the injuries’ cost. Some of the covered expenses include X-rays, surgery, and hospital visits, among others.
If you are involved in accident with another vehicle or an object such as a fence hits your car, collision coverage will help you replace or repair your vehicle.
This car insurance coverage covers damages to your vehicle by things such as fire, hail, vandalism, or theft. If a covered peril damages your vehicle, this coverage can help replace or repair your car up to the vehicle’s actual cash value. Typically comprehensive coverage has an amount that the insured pays out of pocket before their insurance reimburses them for the covered claim. This amount is known as a deductible.
Tips to save on insurance costs
- Always shop for better auto insurance rates
If you need to renew your policy and the annual premiums have risen, shop around and get quotes from different companies. It is also advisable that typically after a year or two, you get quotes from other companies and compare if they offer lower rates. Also, when shopping for the rates, always keep in mind that cheap will always not mean good. Instead, also consider the creditworthiness of the insurance company. If it has lower rates and has good creditworthiness, then that’s a good option to go for. Avoid insurance companies that are not doing well financially.
- Take advantage of multi-car Discounts
If you get a quote from a car insurance company to insure one vehicle, this might end up being expensive per vehicle than it would be the case when insuring several vehicles with the company. Typically insurance companies tend to offer lower bulk rates as this is good for business to them.
- Take a defensive driving course
When you complete a defensive driving course that’s approved, insurance companies can offer a discount. Before enrolling in such a course, inquire from your insurance company if you’ll be eligible for the discount. Also, if there’s a discount, seek to know how much the discount is, as it is prudent to go for the course if the effort translates to the savings you’ll get
- Downsize your vehicle
While it may sound exciting to purchase an SUV, the cost of insuring it might be high as compared to that of a small car. Certain insurance companies will also offer discounts if you go for alternative fuel or hybrid vehicles.
In conclusion, with this article, you have some basics of car insurance, specifically, features and saving cash on car insurance.