Car insurance is basically insurance for vehicles, including motorcycles, cars, trucks, and several other road-going vehicles. Its main function is to offer financial protection against personal injury or physical damage resulting from road accidents and from liability which may also arise from accidents in a vehicle on the roads. The law specifies a minimum amount of car insurance to be carried by each individual and every car owner. This is so that no individual or company can underrate the importance of having a valid insurance policy in force.
One important feature of car insurance is liability coverage, which helps pay for the expenses that arise out of an accident with another vehicle or from the negligence of an individual or company. It may pay for medical payments, for damages to other people’s property, or even for the cost of any repair work that may be needed because of an accident. A common mistake in purchasing car insurance is thinking that a low premium is a good idea, since it usually means low protection – especially if the accident occurs at night or if the driver has a poor record or is a bad driver.
Collision coverage is mandatory in most states, in addition to the minimum required insurance. Collision coverage provides financial protection in the event of a car accident, such as payment for the repair of the car or the medical payments of all passengers. It is recommended that people who drive sedans or high performance vehicles should not get this type of coverage, as they are more prone to accidents.
Bodily injury or bodily damage insurance is required in many states. It provides funds for the repair of your own vehicle if you are injured in an accident with another vehicle or someone else’s vehicle. In the case of a motorist, bodily injury or bodily damage insurance protects him or her from paying medical bills resulting from an accident. It is also a good idea to carry liability insurance on high-performance vehicles, expensive sports cars, motorcycles and other vehicles that may be worth a lot of money. However, if you buy a low-priced vehicle, you will not need to carry a high level of bodily injury or bodily damage insurance. If you purchase a new or used vehicle, you should discuss the issue of coverage with the insurance agent or with your auto insurance company.
Health insurance can provide medical coverage should you become ill and need to receive treatment. This type of coverage can be very expensive, so it is not advised to drive without health insurance. You can get health insurance by obtaining a policy from the major medical insurance company of your choice and paying a small co-pay to have access to this coverage. The downside is that you may only be able to see the doctor who accepts your plan and you may not have access to much of the medical equipment that you would need to recover your health.
Collision and comprehensive car insurance coverage are two types of auto insurance coverage that will pay for damages to your car in the event that an accident occurs. Collision coverage pays for repairs to your vehicle in the event of an accident, while comprehensive coverage pays for damage to your car after an accident. The cost of these policies depends on the type of auto insurance coverage you purchase. The cost can be more affordable if you purchase all three types of coverage at the same time from the same auto insurance companies.