Types of Car Insurance Policies

Introduction

While buying a new car, we often buy any of the available car insurance plans, just like a matter of formality, often ignoring the right aspect of it. More often than not, we don’t even have any idea about the types of car insurance policies present. But, it is to be noted that buying a right insurance policy will provide safety and security to the buyer. For that, knowing the types of car insurance policies will certainly help in the process.

 

The right car insurance should be the ultimate motive of the car owners and if you get confused on which one to buy, you can compare the car insurance quotes from different companies with detailed information of the available schemes and their claiming procedures. One can browse through the available schemes to buy car insurance online too.

 

Here we bring to you the different types of available car insurance policies to make your job easier while buying a car insurance policy.

Liability Insurance

Liability insurance coverage is a policy which covers the liabilities of the third party during any accident. It covers the cost of repairing damaged property and also the medical claims of the insurer. So, if you own a good liability insurance scheme, you will not have to pay a huge amount at the time any accident.

Collision Coverage

If in an accident your car is destroyed or damaged, the insurance company will pay to fix your car or replace it under the collision insurance coverage. If the claimed amount exceeds the price of the car, then the insurance company will pay you the price of the car. So, it is recommended to have collision coverage for a new and expensive car.

Comprehensive Coverage

Comprehensive coverage includes other instances, where the liability and collision insurances are not acceptable. It covers weather damage, car-theft, etc. It is also quite costlier to afford. If your car has anti-theft and tracking devices then it makes this insurance slightly more affordable. Moreover, it is not a necessity to carry this coverage.

Personal Injury Protection

Personal Injury Protection (PIP) is the coverage one must have in order to avoid high medical bill payment for injuries sustained due to fatal road accidents. The best part of this insurance is that it covers the medi-claim of the passengers irrespective of who is at fault for the accident.

Uninsured/Underinsured Motorist Protection

If your car is hit by any other driver, who doesn’t carry any insurance or if your damages exceed the liability limit of the at-fault driver, in that case, an Uninsured/Underinsured Motorist Protection will help you with the expenses.

Conclusion

Buying a car insurance policy is a matter of financial planning and should be treated with equal importance as buying a new car itself. So, knowing the right aspect of the car insurance policies and the types is a major part. Unless you don’t know what are the types available and what it is all about, you will never be able to take the right decision to buy the right car insurance. In fact, the necessity and urgency of the car insurance policy should be rightly known before buying one.