Three Types of Car Insurance Available in the Market

Vehicle insurance is insurance specifically for automobiles, trucks, motorcycles, and any other road vehicle. Its main function is to give financial coverage against physical injury or damage resulting from road accidents and liability, which may also arise due to accidents in a moving vehicle. This policy can also protect the owner from lawsuits on account of injuries sustained in an automobile accident. It is very necessary to have minimum required insurance cover. There are some types of auto insurance such as liability, comprehensive, collision, and medical payments.

 

Liability covers the costs of damages incurred due to car accidents caused by you or your car

If you cause an accident, then the other party may sue you and if it is proved that you were responsible, you may be forced to pay for the medical bills of all the victims. Collision and medical bills are covered under this type of car insurance.

 

Collision car insurance offers financial responsibility coverage for the repair cost for your vehicle in case of an accident

The policyholder who was at fault in an accident provides compensation up to the limits of the policy regarding repairs. All drivers must carry this coverage to operate a motor vehicle legally. You can also get additional insurance to cover the cost of repair to your car in case of theft or fire.

 

Comprehensive coverage is another type of car insurance

It provides coverage for the losses due to storms, earthquakes, lightning, and explosion. In addition, it also covers the expenses related to collision coverage, legal expenses, medical bills, and so on. You should have sufficient insurance coverage to avoid problems in case of an accident.

 

If you have no driving history and have not been involved in an accident for almost five years

You can get car insurance quotes for a no-history policy. In this case, you will need no credit check. The policy premium, however, will be high. This option is appropriate if you are about to buy a new vehicle and do not want to get car insurance quotes for vehicles with bad driving histories.

 

Last but not least, you can consider obtaining a personal umbrella policy that covers your medical expenses in the case of a mishap caused by a third party. In many states, this type of insurance is optional. Yet, it may be wise to get a personal umbrella policy if you own a rental car. You can pay only the rental car’s price without worrying about the cost of other medical costs.

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