Car insurance is the policy that protects cars, trucks, motorcycles, and other road vehicles from property damage or loss. This insurance provides financial protection against any losses incurred from car accidents.
There are different types of car insurance and they all differ in the type of incident they cover. Some cover third-party losses, others cover car damage and some theft.
It is necessary to know the different types of car insurance there is to know which coverage suits you better. For instance, if you are living in an area that is prone to get robbed, and you have a very expensive car, you might want to consider getting classic car insurance.
Here is a list of the different types of car insurance and what they specifically cover:
- Classic car insurance
- Personal injury protection
- Liability coverage
- Collision coverage
- Medical payments coverage
- Auto Insurance
- Rental reimbursement
- Roadside assistance
- Uninsured and underinsured motorist coverage
- Comprehensive coverage
CLASSIC CAR INSURANCE
Are you wondering why it’s called “Classic” car insurance, and not car protection? Well, this is because it is specifically for people with classic and vintage cars that are quite luxurious. You would be needing protection over any damages or wrecks done if you have this kind of commodity.
Cars like Lamborghini, Ferrari, Benz, Maserati, and lots of others are the kind that can be covered by this insurance.
PERSONAL INJURY PROTECTION
This type of insurance takes care of the injury of the policyholder caused by a traffic accident. This insurance strictly covers the medical bills of the insured but doesn’t take pay for the cost of car damages if there be any. It also pays for costs related to loss of income.
Liability coverage covers any ruins caused by your car. It would pay for the injury of the third party involved in an accident and the property wrecked during the casualty. This covers the cost of any repairs or replacement of cars or properties.
This type of insurance doesn’t deal with the personal losses of the policyholder so you might want to get additional insurance for your car.
Collision insurance would help you when you have a bump accident with another vehicle or a static object such as a fence, tree, or gate. This insurance would save you from replacement or repairs costs such as panel beating, windshield replacement, side mirror replacement, etc.
MEDICAL PAYMENTS COVERAGE
Getting this type of insurance keeps on the safe side when a ghastly accident occurs that results in bodily injuries. Medical payment coverage takes care of the bills for treatments, surgeries, and laboratory tests conducted.
It is similar to personal injury coverage but it doesn’t cover lost wages or home services.
GUARANTEED AUTO PROTECTION
This type of insurance is also known as GAP. This policy covers the differences between the actual value of your damaged car at the time of loss and the amount owed on the loan. It is for policyholders who got their cars on loans or leases, so it makes up for the balance.
Rental reimbursement helps you pay for transportation expenses such as car rental, or public transportation while your car is in repair. So if you need to get conveyed, this insurance fully covers everything.
However, it doesn’t apply when your car is under routine maintenance or if you need to rent a car for vacation.
Have you ever been on a journey and suddenly, your car develops faults? Then you’d understand why this is such a good insurance cover that would be helpful to you.
Roadside assistance helps in covering any emergencies that may occur and provide a Technician if need be. So you see? It saves you from being stranded in the middle of nowhere! It is certainly an add-on you need.
Uninsured and underinsured motorist coverage
Most drivers who ply the road have no insurance for their vehicles or have expired motor insurance. This is where uninsured motorist coverage comes in, it covers the damages done to your car by another uninsured car.
Uninsured motorist coverage takes care of both bodily injury and property damage. While underinsured coverage is the policy provision for damages caused by a driver with insufficient insurance.
For instance, if an underinsured driver gets into a collision with your vehicle, your collision insurance can make up for the damages.
Comprehensive coverage is the highest car policy you can get, and the most expensive. It is a type of insurance that covers both third-party and personal damages. With comprehensive car coverage, you can get repairs and replacements for car damages not caused by collisions.
It covers incidents like theft, fire, vandalism, and weather damage, however, there is a deductible that you must settle yourself.
These types of insurance are all important and play significant roles in ensuring that your car is protected from any loss or havoc.
The benefits of getting car insurance are numerous, decide to go for car insurance today and save yourself the stress!
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