Auto insurance is perfectly designed to help you protect you in difficult situations that involves you car. It is a must for all the drivers. Auto insurance companies gives third party insurance coverage and is one of the most important legal requirements.
Off late many people get confused with auto insurance policies. The lack of knowledge may be dangerous when you are shopping for the right insurance policies. This insurance is the most availed personal insurance.
Let us have a look at the basic information and how to select the best of the rest:
What is auto insurance and what will it cover?
Auto insurance companies give financial coverage to you and the passengers of the car at the time of an accident. But, you must decide what level of coverage you want. Most of the auto insurance policies cover the passengers present at the time of accident while others only give protection to your family.
Types of auto insurance
Liability insurance or third part assistance
This the lowest form of insurance coverage offered by any company. This basic auto insurance suggests that if you are involved in any accident and if it proves to be your fault, then the insurance company will give financial benefit to the other parties, present at that time of occurrence. The cover is usually set before hand when you opt for this policy. There are financial limitations and will pay a percentage of medical expenses.
Collision and comprehensive insurance coverage
As the name suggests, this insurance will give you almost 360 degree coverage. After examining if the fault is yours, you will only get the repair amount of the car. However, if the fault is not yours, then you can also get medical insurances. But, always keep in mind the insurance company has its final say about the financial offering.
Most of the auto insurance companies will give your repair amount, as per the current re-valuation of your car. This suggests with changing times, nevertheless, the market valuation of your car will decrease. However, most of the government assisted auto insurance companies, gives you impartial valuation. Their market valuation is always on your cost of the car.
Most of the time, you can avail this policy only after you buy a car and is limited on a given time period. This means, if you think to opt for it later, you may or may not get it. Needless, to say third parties will always limit the coverage amount sanctioned.
A recreation vehicle is different from a normal vehicle. Some of the two seat premium luxury sports cars are considered to be recreational vehicle. There are certain terms and conditions for this type of insurances. Therefore, if you must understand in which category your car falls under, then you should opt for it.
Medical pay and Personal Injury Protection
Medical insurance suggests that it will give substantial amount of medical help, financially, irrespective of any reasons. This demands a little high premium amount but it gives you your peace of mind that your family and friends are safe, while riding with you.
Personal injury protection often comes along as an additional benefit with any type of insurance policies. However, you can still opt for it as a single policy to harvest better policies. If you are opting for a standalone PIP, you can also get financial help, during the time of your medical recovery. It suggests that the insurance company will help you getting your salary, when you are at complete bed rest and cannot join office immediately.
Needless, to say it is a necessary legal tool that will help you to drive your dream car around the city. However, you are investing your hard earned money, so you must go with the best insurance policies
Ceryl Goldberg is an insurance advisor. Recently, she is associated with top auto insurance companies and she gives long term advice to car owners. You can go for her service and know about the best insurance policy, right now in the market.