An auto insurance serves as a form of insurance between you and the insurance company. The insurance company then pays for any monetary loss happening in case of any theft or accident. In return, the car owner has to pay a premium to the insurance company according to their guidelines.
Auto insurance has been made compulsory in most countries as it provides you with economic protection during an accident or a unexpected event. However, people are often not aware of the type of insurance they can get and should get. Following are some of the different types of Auto insurance available:
Different Types of Auto Insurance:
Liability: This type of insurance covers your responsibility towards others assets damage or physical injury.
Property: This type of insurance covers any losses, such as theft or damage to your car.
Medical: This type of insurance covers the cost of medical therapy, treating injuries and any other medical expenses.
Basics to Auto Insurance
In order to get the full benefits of your auto insurance, you need to understand it fully. Auto insurance can be different in a number of ways, but also be common in many.
- The auto insurance will cover you as well as your family members listed on the insurance, whether you are driving your or someone else’s car.
- The auto insurance will so cover protection in case someone else is driving your car with your permission.
- The personal vehicle insurance covers driving for personal reasons only, which include you taking a trip to another city, running household errands, driving to your office etc. It does not provide cover if you are using your car for profitable purposes, such as you renting your car to somebody else or using it for delivery.
- The personal vehicle insurance will not offer coverage if you are using your car to offer transportation to others through ride-sharing services, such as OLA or Uber. However, a number of auto insurance companies now offer supplemental products that can expand coverage for the car owners providing ride-sharing services, at an extra cost.
Is Auto Insurance Compulsory?
Requirements for insurance usually differ from state or state, and it might be compulsory in your state’s guidelines. If you are financing your car, the lender may also require you to get one. Almost all states will have you get these:
- Property Damage Liability: This compensates other people for the damage that you or another person driving your car might have caused to their property or vehicle. This can include damaging boundary markers, any building, a pole in an accident etc.
- Bodily Injury Liability: This covers costs related to injuries that you or another person might have faced while driving your car in case of an accident.
Extended Vehicle Protection
Aside from getting a basic vehicle protection with an auto insurance, you also have an option to opt for extended vehicle protection plans. These can provide you with better mechanical part coverage, and can cover things such as brake repairs, engine repairs, exhaust repairs, transmission repairs and other components of your vehicle.
There are numerous such policies available, such as USAA extended warranty, covering different aspects of your vehicle. You need to look at the policies and choose one that best suits your needs. Make sure that you read all the details prior to getting a policy to see what it covers and what it doesn’t.
These are some of the most mandatory things you will find in all policies. This will help you as well as your family members recover from an unfortunate event, which is why it is important for you to get an insurance policy as soon as possible for a safe driving experience.