The Major Types Of Car Insurance Explained?

 The Major Types Of Car Insurance Explained 

 When you've been in a car accident,  you need someone to have your back.   By purchasing car insurance you can make sure  that someone will. But there are many types   of insurance that offer different kinds  of protection. Which ones do you need?  Let's walk through the six  major types to find out.  Liability is the one type of insurance everyone  must carry. It protects other people when you're   responsible for an accident. There are two sides  to liability coverage: bodily injury coverage   and property damage coverage. Bodily injury  liability insurance pays medical bills, and it   can also compensate people for things like lost  income, and pain and suffering. Property damage   liability insurance pays to repair or replace  other people's vehicles that you've damaged.   It can also cover the cost of fixing fences and  other kinds of property that you may run into. 

Collision insurance 

 Collision insurance protects your own vehicle  after an accident, even if you're the one at   fault. You will be required to buy it if you  use a loan or lease to obtain your vehicle.   Otherwise, getting this protection  for your own car is your choice.  Comprehensive insurance protects your car against  damage not caused by an accident such as theft,   falling objects, or natural disasters. It's  usually purchased in combination with collision   insurance and, like collision insurance, you'll  be required to get it if you have a loan or lease.  What happens if you're harmed by a driver who  doesn't have enough insurance to cover all of   your losses? You're out of luck unless your  policy includes uninsured or underinsured   motorist coverage. Depending on where you live  you may be required to get this type of insurance,   even if it's optional. It's very affordable  and provides important protection.  Now let's talk about medical bills. If you're  injured in an accident, they can stack up   fast but personal injury protection coverage  sometimes called no-fault insurance can help   with these costs. It makes your medical bills  get paid quickly, no matter who is at fault,   and it helps with other expenses like lost  income, child care, or even a funeral.  Personal injury protection  is mandatory in 15 states,   but even where it's not required you may still  be able to purchase it. In some states, there's a   different form of insurance for medical expenses.  Medical payments coverage or med pay is similar to   personal injury protection but is more limited  in scope. Unlike personal injury protection,   it won't pay for lost income or most other  non-medical expenses, but it does cover   accident-related medical bills for you and your  passengers supplementing other insurance coverage   by paying any deductibles and co-pays they may  have. Med Pay will cover funeral expenses as well.  There are of course many other  forms of insurance for car owners   such as coverage for roadside assistance or a  rental car while your car is being repaired, but   these six are the most important ones to consider.

How Does Car Insurance Work

 how car insurance works.  Car insurance provides financial protection for  drivers in case of an accident, vehicle damage,   personal injury or theft. Severe collisions can  cost hundreds of thousands of dollars in damages,   so car insurance can protect  drivers from financial ruin.  There are several types of car insurance that  cover different things. Liability insurance   pays for injuries and property damage  that you cause to others in an accident.   Medical payments and personal injury protection,  on the other hand, cover your medical bills   after any accident, regardless of fault. Then  there’s collision and comprehensive insurance,   which pay to repair or replace your car when it’s  damaged. Collision insurance applies to accidents,   and comprehensive insurance applies to other  damage-causing events like vandalism or natural   disasters. There are also other types of  coverage, like gap insurance and rental   reimbursement, that are optional policy add-ons. To use car insurance, you need to file a claim   after an accident. If you’re at fault, then your  insurance will cover the other driver’s expenses,   and yours if you have certain types of  coverage. But if the other driver is at-fault,   then their insurance will cover your  expenses, up to the limits of their policy.  Once you file a claim, an insurance adjuster  will investigate the damage and injuries and   determine a settlement amount. Depending on what  type of insurance you’re filing a claim with,   you may be required to pay a deductible before  your insurer covers the rest of the cost.  Car insurance is required in almost every state,  although exact requirements vary based on where   you live. If you’re caught driving without  insurance, you can face stiff penalties including   hefty fines, a license suspension, and even  jail time.

 And if you get in an accident without   insurance, you’ll be personally responsible  for covering the cost of any damage you cause.  You can get car insurance from one of 80 car  insurance companies that operate in the U.S.   To get a quote, you can go online  or call a licensed insurance agent.   You’ll need to have your personal information  handy, including your driver’s license number,   social security number, and your  car’s vehicle identification number.  Now that you understand the basics of car  insurance, it’s time to start looking for   coverage.