Having The Wrong Type Of Car Insurance Could Well Get You Into Serious Trouble
Car insurance protects the plan holder (usually the owner of the car) from financial loss as a result of a car accident. For this protection the policy holder has to pay a monthly premium which varies according to a wide variety of factors like the age of the driver, the vehicle being insured, the driver’s record and location to mention a few.
There are currently a number of different types of car insurance to protect the policy holder against costs associated with damage to the car, property damage and injury to persons involved in an automobile accident. The various different forms of cover include:
Liability cover which provides payment for damages to other people or their property as a consequence of an accident and which additionally covers any court costs involved. In a lot of states liability cover is the bare minimum required before you are allowed to take a car onto public roads.
Collision cover which is designed to pay for damage caused to your own vehicle in a collision with another car or other object.
Comprehensive cover which is designed to pay for different types of damage including theft, fire, malicious mischief and damage resulting from severe weather.
Medical cover which provides payment for any medical expenses associated with injuries sustained in an automobile accident.
PIP (Personal Injury Protection) cover which is designed to pay for medical expenses when injury is sustained in an accident, regardless of who caused the accident.
Uninsured and under-insured cover which pays for damages sustained to you when the other driver in an auto accident does not carry sufficient insurance cover.
Each state draws up its own laws governing car insurance and some kinds of car insurance will be mandatory in each state while others will be purely optional. For instance, some states only require you to have liability insurance while other states require you to have PIP insurance cover.
Additionally there are a number of states which are referred to as ‘no-fault’ states in which insurance policy holders can recover financial losses from their own insurance company, regardless of who is found to be at fault in an automobile accident.
Ensure that you are carrying the right type of car insurance by letting the professionals provide you with a free, no-obligation cheap car insurance quote today.
