What is a Car Insurance?
Insurance is getting fame day by day as everyone in this world wants to live a risk free life. Car insurance or Auto insurance is an agreement between you and your insurance provider company regarding what would happen in the result of an accident. It keeps your financial losses at a minimal level in the event of incidents. The insurance provider is responsible of paying repair, replacement costs and even medical bills etc. based upon the coverage and limits you select.
When you purchase a car insurance policy then you and your insurance company decide mutually that what costs company is responsible to pay and under what circumstances. You have to pay a monthly insurance bill (or “premium”) to your insurer company to get these services.
Why do I need car insurance?
Car insurance is required to drive legally in almost all states as it helps pay for damage and injuries to others that you cause in an accident legal responsibility. It can also be important to help pay legal costs if you are taken to a court because of an accident.
Al though it costs about, an average, around $1,300 every driver for full coverage car insurance but it will help you save a lot of money.
Types of Car Insurance
1 – Collision insurance
Collision insurance may cover the damage, repair or replace your car if it is damaged in an accident with another vehicle or object, such as a fence or a tree etc.
2 – Comprehensive insurance
Comprehensive insurance may cover the damage, repair your vehicle if it is stolen or damaged in an incident which is not a collision. It normally covers damage from fire, vandalism or falling objects (for example a tree or hail etc).
3 – Uninsured motorist insurance
Uninsured motorist insurance protects you and your car from an uninsured drivers and hit-and-run accidents. It is often paired with underinsured motorist insurance.
4 – Underinsured motorist insurance
Underinsured motorist insurance protects you in the event of an accident caused by a driver whose insurance is not enough to cover the costs.
5 – Medical payments coverage
Medical payments coverage helps you pay medical costs associated to a covered accident, regardless of who was at fault.
6 – Personal injury protection insurance
Personal injury protection (PIP) covers medical expenses and, in some cases, lost wages and other damages. It depends on the limits of a policy, personal injury protection and it could cover as much as 80% of medical and other expenses from a covered accident.
7 – Gap insurance
Gap insurance protects you against the losses that can occur when the amount of compensation received from a total loss does not fully cover the amount the insured be obliged on the vehicle’s financing or lease agreement.
8 – Towing and labor insurance
It will be there in the comprehensive car insurance. If you don’t have comprehensive car insurance then it will cover the towing and labor insurance may reimburse you for a tow and for the labor costs to repair your vehicle.
9 – Rental reimbursement insurance
Rental reimbursement insurance helps you pay for a rental car if your vehicle cannot be driven after an accident.
10 – Classic car insurance
Classic car insurance provides specialized coverage designed for the unique requirements of vintage and classic car collectors. Find out if classic car insurance is correct for you.
Top 10 car insurance companies in USA
|2||QuoteWizard||Best For Price Comparison|
|3||GEICO||Best For Additional Riders|
|4||State Farm||Best Mobile App|
|5||Esurance||Best Custom Policies|
|6||Liberty Mutual||Great Customer Service|
|7||Allstate Insurance||Overall User Experience|
|9||Auto-Owners Insurance||Best Individual Agents|
|10||The Hartford||Best Claims Management|