Understanding Car Insurance
Good car insurance is designed to protect you and your vehicle from whatever covered losses may happen as a consequence of an accident. It all varies with the level and types of coverage one chooses, but essentially this insurance is designed, at the very least, to protect a policyholder should he or she be hit by another vehicle and, especially, is at fault for said accident. Of course, more comprehensive protection is always available for purchase, such as coverage that pays out for medical costs for both you and your passengers, collision coverage that pays for the repair of your car, regardless of fault, protection from theft or vandalism and so much more.
Kinds of Coverage
The main kinds of protection fall into three categories, namely liability, collision, and comprehensive. Liability coverage pays out for costs incurred by the other party due to an accident for which you are fault. (Note that it will not pay for your own expenses in this case.) Collision coverage compensates one should his or her vehicle be damaged, regardless of fault. Comprehensive coverage pays out to repair your vehicle should something occur outside of a collision, such as fire, vandalism, theft or flooding. There are other types of coverage out there, like reimbursement for rental cars, personal property and injury protection, and so much more. (Talk to your insurance professional for more details.)
Practically all insurance providers will mandate a deductible payment prior repairs or replacement of a vehicle, normally between $250-$1000.
Again, there is a myriad of choices of coverage to purchase to protect you and your vehicle, such as rental cars to provide you with temporary transportation while your car is being repaired or replaced, medical cost assistance, towing help and so on. Speak with an insurance professional to fully understand the options available when you buy a policy or go online to see for yourself.
Carrying this often-mandated insurance for your auto, (most states require at least liability coverage), is vital since even the most mundane of repairs can mean spending significant dollars. And, bottom line, a policyholder will enjoy the comfort in knowing that his or her vehicle is financially safeguarded from the consequences of accidents and other issues.