Car Insurance Cover: 5 Popular Covers And Their Advantages

Happy driving with a car insurance cover

Owning a good car is an achievement in life. However unforeseen events are bound to happen during it’s estimated useful life. These may leave you financially crippled. This indicates that there is need to provide financial protection to your car in the event of an accident. Purchasing a car insurance cover, better known as auto or motor insurance, is usually the go to solution. In so doing, the car owner gets into a contract with an insurer, who agrees to pay for losses or damages that the car may incur in exchange for a premium.

To start off, car owners would go digging for information on some of the common terms used in the insurance industry. Various types of car insurance cover are available in the industry. Looking up why a cover is important, how long it will last, what are the different types available, and which insurer has the best deal. This can be an overwhelming exercise for anyone. 

1. Comprehensive Car Insurance Coverage

This type of car insurance cover protects you from damages caused by external factor that are beyond your control. These could be Theft, fire, vandalism, weather or acts of nature. They are some of the unforeseen events which are covered in this package. With a comprehensive coverage, you will choose a set deductible. This is the amount you pay out of pocket to cover part of the claim. The insurer foots the remainder of the bill. However, this cover has a limit, which equates to the actual amount of your car.

2. Collision Car Insurance Coverage

Unlike comprehensive coverage, this one comes to play in the event of car accidents.  It protects your car from financial loss brought about by any physical damages. The damage could be could be a collision with another vehicle, a tree, a fence among others and the cost of repairing or replacing your car afterwards is borne by the insurer. This car insurance cover is also subject to a deductible, a set amount subtracted from any collision claim.

3. Liability Coverage

In most states it is compulsory to have for car owners to have this type of insurance coverage, as it is provided by law. A liability car insurance cover can be further broken down into:

Property damage liability: In the event of a collision, this insurer covers the damage that the other party’s property will incur. It however does not cover any damages to your property.

Bodily injury liability: It caters for any injuries that the other person involved in the accident that your car causes, including medical expenses.

4. Uninsured And Underinsured Motorist Coverage

Believe it or some motorists drive insured! They usually tread careful not to cause any accidents but accidents happen. Under this car insurance cover, if the other party is responsible for the damages caused by an accident but lacks a cover to pay for expenses related it, the insurer will pay you for the damages. Some covers even pay for your passengers, bonus for a family.

5. Personal Injury Protection Coverage (PIP)

If you get involved in an car accident, your insurer would clear your medical bills thanks to this cover. Also referred to as the no-fault car insurance, or the first party benefits coverage. In some states, it’s mandatory to purchase it prior to a car insurance cover while in others it’s optional. When no faults can be established from the accident, the cover could extend to your passengers. However, the expenses must be related to the injury from the accident, implying that any property damaged in the process cannot covered.