You know it is the law, but you have been riding without car insurance for some time now. Why? No matter how good you think, car insurance is extremely important to any driver. Accidents are simple and straightforward and you should be protected if this happens. Not all car insurance is the same, and you may be a little confused by the concepts.
Liability car insurance
The first thing you need to know is liability car insurance. This covers you from claims arising out of a physical injury or property damage accident. Generally, there are three main components of any liability car insurance policy: physical injury liability coverage, property damage liability coverage, and uninsured coverage. The first type of cover protects you in an accident, for which you have made a mistake and others have been injured. Your responsible car insurance company will pay legal claims for medical expenses or lost wages. If you run into someone’s wall or the side of their home, you’ll need liability insurance for property damage and will pay for repairs. In the event that you do not necessarily make a mistake and the other driver does not have liability car insurance, you will be covered by an uninsured or underinsured car cover.
Collision car insurance
Liability car insurance is not the same as collision car insurance. As you can see, the above description does not mention anything about fixing your car. This is because it is not covered under a simple liability car insurance policy. If you don’t want to pay in your own pocket, you need collision car insurance. Collision car insurance covers the repair of your car, when you guessed it, colliding with another object. If you are one of those people who chases and kicks poor, unsafe animals, then this mask is not for you. You need comprehensive car insurance to fix a torn headlight.
Car insurance premium
Generally, you can choose a deductible rate, that is, the amount your car insurance company pays to repair your car. Generally, the higher the deductible, the lower the car insurance premium. If you lease a car, own a slightly new car, or pay for a finance company, you definitely need collision car insurance. Many older car owners may want to completely avoid this type of car insurance. If your car is complete, the auto insurance company will pay you the market value of your car, reducing your deductible value. If you can absorb the cost of replacing your car yourself, you may want to forego this.