Car Insurance Types and Coverages
Anyone who registers a car will need car insurance, as it is the common law through the United States. Therefore, as you shop for different types of auto insurance, familiarize yourself with the different types of insurances and their coverage.
Coverage is essential when considering the potential costs surrounding an accident – be it the repairs of the cars involved or the medical costs of the victims. These are too large of risks without ample coverage.
Car insurance policies are classified into two categories:
- Third-party liability
- First party insurance
The Common Types of Auto Coverage
It is important to understand these common types of coverage so as to know which fits your budget:
- Liability Coverage: The two main types of liability coverage are bodily injury and coverage for personal property. Liability coverage is legally required for drivers in most states. This coverage pays for personal injuries, bodily medical expenses, and property damage if you are at fault.
- Collision Coverage: If you hit another vehicle or an object such as a lamp post or a structure while driving, collision coverage helps you pay for the damages incurred.
- Comprehensive Coverage: This coverage covers the losses to your car if your car is broken into or dented in a hailstorm. This type of auto insurance also covers losses from vandalism, riots, floods, animal collision and theft.
- Uninsured/Underinsured Motorist Coverage: There are drivers who are completely uninsured or don’t have enough insurance to cover their portion of the damage. This kind of insurance provides liability coverage for you if an uninsured or underinsured motorist is at fault. That’s why it’s vital to consider this coverage to protect yourself.
- Personal Injury Protection [PIP]: PIP covers medical expenses if you or anyone in your car is hurt after an accident. It can also help pay for rehabilitation expenses, loss of work, funeral costs, and replacement services.
Wherever you decide to make changes to your coverage, it’s important to understand how each option works and if you really need it. Some auto coverages are mandatory in your state while others are simply extra options.
Your local agent may help you get competitive car insurance quotes or choose the best coverage combinations at a price that fits your insurance budget.
What Is Progressive Car Insurance?
A progressive car insurance company is an automotive insurance provider in most states. Progressive car insurance companies offer cheap car insurance coverages like bodily injury liability, medical payments, collision coverage, property damage liability, and uninsured motorist coverage.
Progressive auto insurance offers the following specialized coverage options:
- Roadside Assistance: This coverage protects you if your car breaks down due to mechanical issues or a flat tire.
- Car Rental: This coverage pays for up to 30 days of rental if your car is being repaired as part of a comprehensive claim.
- Accessories: This protects you if accessories in your car such as stereos, tools or TV equipment get damaged or stolen.
Comprehensive Coverage Basics
There are occasions where something happens to your car that is unrelated to a covered accident. These unique situations include weather damage, or a stolen car, and may not be covered by your existing liability insurance.
Comprehensive coverage is one of those great things to have, however, this type of car insurance can be costly and may not be a necessity if your car is easily replaceable. Accessories on your car such as anti-theft and tracking devices can make this coverage cheap car insurance.
What is Considered Acts of God?
Acts of God is a legal term meant to describe events that happen without the intervention of man. Such events included are:
- An extraordinary interruption by floods or earthquakes of the usual course of events which cannot be reasonably foreseen or prevented.
- Sudden and irresistible acts of nature such as exceptionally high tides, lightning, earthquakes or floods.
- A wind that causes a towering oak to damage your windscreen or a moose that wanders in front of your car and causes you to swerve off the road in an accident, is also referred to as Acts of God.
These events are becoming increasingly more common. It is understandable then why motor vehicle owners would want insurance coverage that protects them during such events.
If you live in an area prone to disasters, it would be wise to consider extra car insurance. Otherwise, you might be content with your current liability coverage only to realize that in the event of a disaster, you are left regretfully underinsured.
When comparing car insurance quotes, be sure to ask if the company covers against Acts of God.
Cancellation of Auto Insurance
What if you have discovered alternative cheap car insurance and want to cancel your policy? This can only be possible after ensuring the vehicle is insured elsewhere and you surrender the original Certificate of Insurance.
The auto insurer is then expected to inform the Regional Transport Authority about the cancellation.
In the case of an auto insurance dispute, the auto insurer and the agreed party agree upon using a third person to look into their case. This is referred to as arbitration and is an alternative way to settle auto insurance cases that would otherwise be settled in a court of law.