Having auto insurance is a must, but you must get the right one. Auto insurance is of two types, one that is mandatory by law to cover for third party liabilities, and the other is to protect the driver and the vehicle from damages. The third-party cover ensures that you do not undergo financial losses in compensating the other party affected in an accident that happened due to your fault but to protect yourself and your family from personal injury as well as recover the cost of vehicle damage you must take suitable coverage.
Since car insurance is a legal requirement in most states, you must avail the best cheap auto insurance to protect your interest to the fullest. It is important that you have a clear idea and understanding about the types of coverage available so that you ensure appropriate coverage without paying a high premium. You can expect the following types of coverage when you take auto insurance policy.
When you are involved in a car collision, and your vehicle undergoes damage, then this type of coverage should pay for repairing your vehicle. However, if the vehicle is beyond repair or the repairing charges exceed the value of the vehicle, the insurance company would pay you a check for the total amount provided the policy permits. The coverage is more applicable to new cars, whether it is brand new or quite new.
Property damage cover
The purpose of insurance cover is to protect you from financial liability and to have property damage cover means that if you cause damage to other cars and damaged property, the insurance company will pay for it. But the cover is exclusively for third parties, and you get nothing for damage that happens to your car. Collision coverage, together with property damage cover, keeps you fully covered against damage to any car, including yours. Property damage cover is mandatory in most states just as bodily injury cover.
Bodily injury coverage
The coverage is mandatory by law in most states, and it provides financial assistance to those injured in an accident caused by you. It includes medical treatment, the cost for rehabilitation, legal fees, funeral expenses, and costs for pain and suffering. In addition to covering passengers in your car, it also covers passengers and drivers in other cars as well as pedestrians. The minimum required limits of coverage vary between states.
The term comprehensive might be misleading as it could make you believe that all kinds of damages are included in it, but in reality, it only pays for damages caused any means other than collision. Typically, it takes care of car theft and vandalism as well as natural disasters, fire, riots, damage caused by animals and falling objects. Even if any contents of your car or the car are stolen, the insurance company will pay for it.
Many lenders insist for such coverage, and if you are buying a car on loan, it is worth to check this with the lender so that you can include the cost in your budget.