Cars are becoming popular and many of the car makers from different brands brag about releasing new models every year or twice a year to entice the public. Even though this piece of metal is not as affordable as it is, but still many are longing to ride and drive the newest models. To benefit the comfort and safety it gives back to the owner and the new technology installed on it.
[xyz-ihs snippet=”POSTADS”]Getting a car considered as a type of investment or your reward for your hard work. Whatever you define it but the bottom line is “Are you Protected” ? You may easily answer yes because my car comes with the top of the line safety features. Hooray! Your right! But what about your car? You may probably answer right away Yes! Why? because my new car is insured and other think of a second thought. Hmm does my car insured?
Well then let’s just put it into the broader positive perspective. Then we will go back to the first question “Are you Protected?” Of course what comes up in your mind of course the confidence that your are protected because you are paying decent amount a year for your auto insurance. And which makes you unworried about it at all. But remember auto insurance options varies depending on the package you are getting. Always bear in mind to examine closely the policy before signing everything and make sure you read it above everything else because understanding the various types of insurance can help you out in reducing the amount of insurance that you pay for your car.
The other thing that a knowledge of the various types of auto insurance can also help you understand whether you are under insured in any of the areas; knowledge that can be of great value to any motorist.
Subsidiary Areas of Auto Insurance
Some types of auto insurance like Medical Payment and Uninsured Motorist Coverage vary from state to state. Medical Payment is used to bear the cost of medical treatment for the passengers in your car during an accident, irrespective of who is at fault. States that have a No-Fault law do not require this cover because the No-Fault law just covers the cost of medical payment. Uninsured Motorist Coverage is also optional in several states. This cover protects you and the passengers in your car in the event of an accident involving an uninsured motorist.
Collision Coverage
Collision Coverage is generally mandatory on vehicles that come with a loan. The kind of car that is being insured is of importance while buying this type of insurance. Drivers of older cars can usually skip this variety of insurance.
Areas Where you Need High Coverage
Property Damage Liability and Bodily Injury Liability are the two areas of auto insurance where you need high coverage. Property Damage Liability covers the cost of damage to another vehicle in an accident where you are seen to be legally responsible. With the high cost of vehicles and the spiraling cost of auto repair, it is mandatory for motorists to have adequate cover in this sphere. The same holds true in the case of Bodily Damage Liability because of the steep costs of medical treatment. This type of auto insurance also covers the cost of legal fees in the case of a legal suit.
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Comprehensive Coverage
The last type of auto insurance coverage is Comprehensive Coverage. This type of coverage pays for all manner of damage, such as theft, natural disasters, vandalism and accidents involving animals. Some lenders require motorists to purchase Comprehensive Coverage for vehicles that have a loan.
