Car Insurance & Importance of Car Insurance

Introduction To Car Insurance

"Car insurance is a contract between you and an insurance policy that covers loss if any mishappen (accident, theft) occurs to your car."

 In order to pay a premium, the insurance company agrees to pay your loss as mentioned in the insurance policy. Car insurance provides coverage such as in case of accident or theft. Personal car insurance policies are mandated by US states and laws modify. Policies are issued for six months or 1 year time period and are renewable. The insurance company will send you a notice if your policy is required to be renewable and pay the premiums.

Why Car Insurance Is Important?

Car insurance protects you and your family from huge damage. By investing a small amount of premium, you may be safe from heavy loss. Right car insurance policy protects you and your family, passengers, and other drivers. Any accident or mishappen occurs at any time, if you have the right insurance policy then you can save yourself and your family from serious loss.

Sometimes another person's mistake became a problem for you. With the right insurance policy, you can feel secure after an accident from insured and uninsured drivers. A car insurance policy is able to cover your medical expenses. If your car accident took place then the right car insurance policy provides you a medical concession.

What Does Car Insurance Cover?

Car insurance is a benefit for all of us. Because it protects you and your belongings from any misfortune. The terms that car insurance covers are discussed below.

Collision Coverage

Commonly, collision insurance covers you when your car “crashes” with another object. Collision coverage covers your loss if your car accident occurs and your car collides with a tree, building, or any other object.

For example 

Poles, Railings, Barriers, Signs, Trees and shrubs, and other buildings  

Comprehensive Coverage

Comprehensive coverage covers losses like hailing, damage from falling objects, a broken windshield, vandalism, or damage from an animal. If your car is stolen then it repays your loss.

For example 

Natural calamities (e.g., earthquakes, floods, hurricanes, and hailing), Fire, Destruction, Theft, Falling objects (e.g., trees, branches, or ice), Broken windshields, Harm occurring due to animals (accidentally a deer came in front of your car).

Car insurance also covers the following terms:

• Protects you and your passenger from medical expenses.

• If you are at fault for an accident then you bear medical expenses for the individuals in the other vehicle.                                                                                                                                                 
•  Troubles like theft, destruction, floods, fire, and storm, are also covered by a car insurance policy.                                                                                                                                                   
• If you get into an accident and hit your car with a tree, or other object then an insurance policy covers repairs to your car.                                                                                                                    
• When you cause an accident and then damage another person's vehicle. Your legal expenses, settlements, and decisions if you are trialed because of an accident.                                                  
• If an uninsured driver beats you then your medical costs, lost wages, funeral expenses, and other expenditures. Harm to your possessions may be protected in some states.

Benefits Of Car Insurance Policy

Financial liability: A right insurance policy is a better way to get rid of huge damage. 

Covers repairs and replacement losses: If you want to repair your car then a car insurance policy helps you and in case of replacement of spare parts it also benefits you.

Medical grant: A car insurance policy provides you with medical facilities if your accident occurs due to an insured vehicle.

Drivers and passengers' liability: A car insurance policy not only protects you but also protects your passengers and other drivers. Due to the right insurance policy, other drivers also save from any damage.

Covers personal accident: If any death occurs due to a car accident then the car insurance policy bears all expenses.

Garage facility: Different insurance companies have a large number of network garages in many areas that provides services to repair your car in case of mishappening.

Third-party liability: If an accident occurs and damage happened to the third party's car, the insurance policy protected the insured vehicle and covers the death of a third party.

Source: For updated information on insurance visit https://www.investopedia.com/.