What is Car Insurance?
Auto insurance/Car insurance is an agreement between the person and the insurance company to protect you in case of any accident to your car or if your car is stolen. Car insurance covers your financial loses if you are paying premiums regularly, then your lose is covered by the company. Car insurance policy Its a type of motor insurance policy which cover car accident and repairing damages to protect your car. It kind of a risky contract between the insurer company and the insured person. Companies pay in exchange of premiums you are giving to them.
What are the benefits of car insurance?
As we know, insurance policies have large benefits and they cover you in every aspect.
Here are five benefits of car insurance;
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Repair and Replacement in case of damage or loss like fire, ■■■■■■■■■ and collision.
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Liabilities of Third party
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Covers Personal accident
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No claim bonus
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Network of garages.
These are the some benefits of Car insurance policy because they make you safe in several conditions.
What are the types of car insurance?
There are different types of car insurances to provide better facilities and protect in every case and in every unexpected situation.
So, there are mainly 5 types of car insurances which are;
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Motorist Underinsured protection
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Comprehensive Coverage/insurance
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Liability insurance
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Collision Coverage/insurance
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Injury Protection
Is it better to have collision or comprehensive?
Every type of car insurance is important and necessary because they try to safe you from loses. If you are having an precious car or if you have leased a car from bank, then you should have both of these insurances.
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Collision insurance policy covers the car damages due to crashes and accidents.
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Comprehensive insurance covers the other loses which are due to disasters like flood damages, drought earthquakes.
How do I know if I need collision insurance?
If you want to determine that if collision insurance suitable to you or not. Then firstly calculate the annual cost and coverage for your vehicle and also have a look and weigh the value of your car to determine you estimated coverages. If the coverage goes higher than the actual cash value of your vehicle then this insurance policy will not suits you.
When should I stop collision insurance?
If your car is worth $3,000 and you’ve got a $500 deductible, your potential payout would only be $2,500 if your car was totaled and you placed a collision claim. Using the ten percent rule, if your collision and comprehensive premiums cost $250 or more a year, it is time to think about dropping the coverage.
What is the difference between bodily injury and personal injury?
Bodily injury insurance and Personal injury insurance both are the terms of a car insurance. Both terms seems same but they have differ criteria.
Bodily injury insurance covers the cost of the person who got injured by someone’s car. The sufferer or victims of the accident falls in this category. While on the other hand, Personal injury insurance is also referred as extension of car insurance in which there is damage to body mind, brain emotions and parts of the body.
What is the difference between bodily injury and medical expenses?
Bodily injury insurance applies to injuries you or anyone insured under policy becomes liable for as a results of an accident.
Medical Expenses is a term in which reasonable amount is paid to you and to other passengers who suffer injuries and there is not fact that whose fault is in the accident.
What is the medical portion of auto insurance premiums?
If you claims medical costs from companies, then they will deliver you the amount which they get in premiums from you for your medical assurance. You can also provide premiums for your family and passengers to them.
Frequently Asked Questions
Car insurance policy are most used policies, people ask some question before buying this policy;
Should I have collision and comprehensive on an old car?
There is a rule according to which insurance is applied and dropped. The Standard Rule is that if your car become 5 to 6 years old or has reached the 100,000 mileage distance, then you should stop your insurance policy.
But today, people don’t want to apply this rule. They buy and continue insurance by keeping in view the value, price and the precious parts of the car.
Is comprehensive the same as full coverage?
There are two types of Full coverage insurance and they are; 1- Collision and 2- Comprehensive. In short, comprehensive insurance will be applied when you are not driving. And Collision insurance will be applied when you are driving. That’s two different terms and two different criteria’s of Full coverage insurance.
How much do personal injury cases settle for?
Settlements and court awards in personal injury cases typically range from $3,000 to $75,000. Seven out of 10 readers receive a settlement or award for his or her personal injury claims. That’s how these claims are made and how much they get after wining cases.
Conclusion
Car insurance policy like other insurances provides you protection from any damage to your car in an accident or if your car is stolen, then the insurance company will provide you repair damages cost and is stolen then provides you cost and covers you financially. Hence, if you have a precious car, then car insurance is necessary and beneficial for you.