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What is car insurance?<\/h2>\n\n\n\n
Car insurance refers to an existing contract between you and an insurance company that keeps you protected against any financial losses in case you have an accident, your vehicle gets damaged or if your car is stolen at some point.<\/p>\n\n\n\n
How does car insurance work?<\/h2>\n\n\n\n
You have to find an insurance company that offers car insurance, and then pay them a premium. This car insurance company then agrees to pay you for any losses incurred depending on the policy that you chose.<\/p>\n\n\n\n
Why do you need car insurance?<\/h2>\n\n\n\n
There are so many reasons why any car owner needs insurance. Some of them include:<\/p>\n\n\n\n
Car insurance protects you and your family<\/h3>\n\n\n\n
Remember, your family members always depend on you and are entitled to the car you own. They will also be riding in it so it\u2019s important to keep them safe from any financial hardship that may arise because of your owning that car should anything out of the ordinary happen.<\/p>\n\n\n\n
Car insurance reduces your level of stress in hard times<\/h3>\n\n\n\n
We can never tell what lies ahead. Sometimes unforeseen tragedies face drivers and passengers. They include injuries, accidents and many others that could leave you emotionally stressed. So, car insurance reduces this stress so that you can focus on getting better and rebuilding yourself.<\/p>\n\n\n\n
Car insurance gives you financial security<\/h3>\n\n\n\n
You may be very well off today but you do not know what tomorrow holds. The unexpected could suddenly happen and leave you in a worrying state financially when it comes to your car. Car insurance usually pays you out in case of unforeseen car incidents.<\/p>\n\n\n\n
Car insurance grants you that much-needed peace of mind<\/h3>\n\n\n\n
Nothing can ever replace the importance of your health. However, you can rest happily knowing that should anything happen to you while you\u2019re driving your car, your insurance will help you with financial security.<\/p>\n\n\n\n
What are the types of car insurance you can get?<\/h2>\n\n\n\n
There are different types of car insurances. They include:<\/p>\n\n\n\n
Liability car insurance<\/h3>\n\n\n\n
Features<\/strong><\/p>\n\n\n\n \u2022Pays for victim\u2019s damaged property \u2022<\/p>\n\n\n\n Covers victim\u2019s medical bills <\/p>\n\n\n\n \u2022Doesn\u2019t cover your injuries <\/p>\n\n\n\n \u2022Amount paid has a limit <\/p>\n\n\n\n \u2022You pay from your pocket when limit is exceeded <\/p>\n\n\n\n \u2022Limit depends on insurer<\/p>\n\n\n\n This car insurance type is helpful especially when you are at fault in case of a car accident. It covers the financial damages to the other party.<\/p>\n\n\n\n This type of car insurance is a combination of both bodily injury insurance and property damage insurance types.<\/p>\n\n\n\n The car insurance will first pay for the expenses from the injuries then compensate for the damaged property as their specific names state.<\/p>\n\n\n\n In many places, for you to even be allowed to drive you need to have some kind of liability coverage. It\u2019s either that or any other kind of financial responsibility guarantee.<\/p>\n\n\n\n This is only fair as it ensures that any driver out there who somehow ends up hurting anyone or one who damages property on the roads will compensate the injured or affected party.<\/p>\n\n\n\n When you go about buying this type of car insurance, you will have the limits broken into the three numbers which are also called split limits.<\/p>\n\n\n\n These car insurance\u2019s split limits tell you the maximum amount that can be paid in case of bodily injuries for a single individual, for all people who were involved in the car accident and the damage to property respectively.<\/p>\n\n\n\n Should there be any damage that exceeds the limits indicated in this car insurance, you\u2019ll have to pay from your own pocket.<\/p>\n\n\n\n Features<\/strong><\/p>\n\n\n\n \u2022Covers victim\u2019s medical expenses <\/p>\n\n\n\n \u2022Covers victim\u2019s lost income <\/p>\n\n\n\n \u2022Covers your legal fees <\/p>\n\n\n\n \u2022Subject to a per-person limit <\/p>\n\n\n\n \u2022Subject to a per-accident limit<\/p>\n\n\n\n This car insurance is the most common one since it\u2019s the one that will cover you in case you are the cause of an accident that ends up either killing or injuring other people.<\/p>\n\n\n\n Your car insurance company is in such cases responsible for paying all the other involved party\u2019s medical expenses. They will also cover any lost wages and also funerals if any<\/p>\n\n\n\n The other advantage is that it also covers legal fees should the other party decide to sue you.<\/p>\n\n\n\n Features<\/strong><\/p>\n\n\n\n \u2022Covers damage on victim\u2019s vehicle\/property <\/p>\n\n\n\n \u2022Doesn\u2019t cover damage to your property <\/p>\n\n\n\n \u2022Subject to a limit <\/p>\n\n\n\n \u2022You can choose your preferred limit <\/p>\n\n\n\n \u2022The higher the limit the higher the premium<\/p>\n\n\n\n This type of car insurance covers any kind of damage caused on somebody else\u2019s property. For example, if you ran into someone\u2019s house or the rear of someone\u2019s vehicle, property damage insurance would have you covered.<\/p>\n\n\n\n The amount of property damage that\u2019s usually paid by every driver depends on where they live. While you might find it quite tempting to pay just the minimum coverage, keep in mind that any damage whose cost goes above your car insurance limit will be paid for from your own pocket.<\/p>\n\n\n\n You should also know that this type of car insurance does not cover your car.<\/p>\n\n\n\n Features<\/strong><\/p>\n\n\n\n \u2022Has collision insurance <\/p>\n\n\n\n \u2022Has comprehensive insurance <\/p>\n\n\n\n \u2022Collision insurance covers your vehicle repairs or replacement <\/p>\n\n\n\n \u2022Comprehensive insurance covers any kind of damage other than collision <\/p>\n\n\n\n \u2022You must choose a deductible amount<\/p>\n\n\n\n When you crash into someone else\u2019s vehicle or hit something that damages your car this type of car insurance will cover the cost of repairs.<\/p>\n\n\n\n There are two types of coverages when it comes to physical damage car insurances. They include collision and comprehensive whose difference is based on the circumstances under which your car got damaged.<\/p>\n\n\n\n Collision coverage car insurance – this coverage will pay for repairs done on your vehicle in case you\u2019re the one who caused the accident. Often, fault is placed on the driver even if it wasn\u2019t so the car insurance company will pay for repairs while it tries to prove that you were innocent in an attempt to get the full amount back.<\/p>\n\n\n\n Comprehensive coverage car insurance- this insurance covers issues that include theft, any damage from natural causes or disasters and vandalism. This car insurance generally covers the physical damage that won\u2019t be covered by collision coverage.<\/p>\n\n\n\n This car insurance involves a separate deductible amount that you\u2019ll be required to pay for every such incident by yourself before the car insurance company steps in to cover the rest.<\/p>\n\n\n\n This deductable amount will vary from one car insurer to another. The amount you will choose to have deducted will to a great extent affect your premium.<\/p>\n\n\n\n Features<\/strong><\/p>\n\n\n\n \u2022Could include liability coverage <\/p>\n\n\n\n \u2022Could include comprehensive coverage <\/p>\n\n\n\n \u2022Could include collision coverage<\/p>\n\n\n\n Some car insurance companies will extend their insurance cover to rental vehicles. Make sure you check for this thoroughly before you rent the car.<\/p>\n\n\n\n The most important car insurance is liability and property damage insurance. In case you are unfortunately involved in a car accident, you risk completely losing your driver\u2019s license if you don\u2019t have it.<\/p>\n\n\n\n If you get into an accident without it you could also face huge penalties and bills from the damages.<\/p>\n\n\n\nRelated Topics (Ads):<\/span>Bodily injury liability<\/h3>\n\n\n\n
Property damage car insurance<\/h3>\n\n\n\n
Physical damage car insurance<\/h3>\n\n\n\n
Rental car insurance<\/h3>\n\n\n\n
What\u2019s the most important car insurance to have?<\/h2>\n\n\n\n