Car insurance is coverage for automobiles, trucks, motorcycles, and several other road-going vehicles. The primary function of this insurance is to provide physical protection against bodily damage or injury resulting from road accidents and from liability which can also arise out of accidents in a car. The legal requirements to get car insurance vary with the laws of different states. The types of car insurance available also vary, with different insurers often having slightly different options. For this reason, car insurance comparison is crucial.
There are three major types of car insurance that an individual can purchase. These are personal umbrella policy, collision insurance, and comprehensive insurance. The personal umbrella policy provides an individual with coverage for losses due to personal injuries sustained while driving a rental car. The maximum benefits under personal umbrella policy will depend upon the value of the insured vehicle and the personal injuries involved. For example, an individual may receive monetary benefits if he or she is injured in a vehicular accident caused by another person’s negligence.
Collision insurance on the other hand provides coverage for damage resulting from vehicular accidents. It may pay up to the full market value of the vehicle that was damaged or even more depending on the claims process and claims history of the insurer. Comprehensive insurance is the most popular as it provides the best coverage for the least amount. It may pay up to the limits of the bodily injury coverage provided by the umbrella policy, but it does not pay any premiums for any damages arising from vehicle accidents.
Car drivers may need some form of liability insurance. This is needed to protect the driver’s own assets. Liability insurance companies have specific limits to how much they will pay for claims from drivers who cause car accidents. The liability insurance may need to be renewed periodically, which means drivers need to find new quotes every year. Some companies may offer special discounts to high-risk drivers who have had accidents or tickets within the last three years.
Roadside assistance coverage is a combination of medical and rehabilitation services offered through various providers. It can also come in handy when an uninsured driver needs help getting to their destination. Car drivers can choose the services included in the coverage and the deductible amount. Roadside assistance plans will often contain options for rental car reimbursement, credit card reimbursement, and rental car payment assistance.
Collision coverage is designed to repair or replace the entire damaged car in an accident. This portion of the coverage pays for all parts of a vehicle including the frame, transmission and engine. In many states, collision coverage can be combined with comprehensive or collision to save drivers money. Motorists are encouraged to choose the most cost-effective deductible level possible. Some policies allow drivers to exclude collision from their policy altogether.