Car Insurance Guides

Car Insurance

In a fast-paced world like ours, managing your personal and professional lives can be pretty tough. It’s even tougher if you don’t have a car. You have to race against time every day trying to catch the bus or train. And if you work very far from home, that means added stress and discomfort. But getting a car is a big investment that would cost you anywhere from a few thousand to hundreds of thousands of dollars.

You also have to worry about finding the perfect car that matches your day-to-day activities. With so much on the line, giving your car maximum protection is of uttermost importance. That’s where car insurance comes in. With car insurance, you can prepare for even the most devastating events and unexpected occurrences. But what is car insurance? What does it cover? And is it enough?

What Is Car Insurance?

Car insurance is similar to other types of insurance policies. It covers you, your car, and other road users. Car insurance is a contract between you and an insurance company that protects you from financial loss due to unexpected events including theft, accident, break-in, and more.

Just like any other insurance plan, you will be required to pay a premium and your insurer will pay for your losses as long as the event is covered by your insurance policy. Overall, a basic car insurance plan will give you all the protection you need on and off the road.

Is Car Insurance Necessary?

Basic auto insurance is required in most states in the U.S. However, you shouldn’t be considering auto insurance because the government requires it. Instead, you should get car insurance to protect your car and other road users. When you’re on the road, anything can happen. Accidents are pretty common and they don’t happen because you’re a bad driver, but because there are so many reckless drivers out there. A basic car insurance plan would cover damage to your car or your medical bills in case there is an accident. It would also pay for the medical bills and property damage of other drivers in case you’re the reckless driver.

What does car insurance cover?

A typical car insurance plan will help you save on repairs to your car and your medical costs after an accident. However, there are many types of car insurance plans and some will cover more than just what you need. Car insurance plans are mainly grouped into three categories.

• Liability Insurance – This plan will cover the expenses for injuries and property damage caused by you.
• Personal Injury Protection (PIP) – This will cover your medical bills after an accident regardless of who’s at fault.
• Personal Injury Protection (PIP) – This will cover your medical bills after an accident regardless of who’s at fault.

Within these categories are more specific coverage plans. Each plan will pay out differently so it’s important that you take a close look at all the options before making a decision. Below, are the main types of car insurance coverage.

• Bodily Injury Liability – This will pay for the medical bills of other drivers and road users due to an accident caused by you.
• Property Damage Liability – This will cover the costs of repairs to the property you damaged.
• Uninsured motorist property damage – This will pay for repairs to your vehicle after an accident caused by a driver with no insurance.
• Underinsured motorist coverage – This will cover your expenses after an accident with a driver with little insurance. Your insurer will make payment once the driver’s insurance’s limit has been expended.
• Collision coverage – This will cover your repair costs from traffic-related accidents no matter who is at fault.
• Comprehensive coverage – This covers the repair costs of your car from accidents that are out of your control like weather events, collision with an animal, vandalism, and theft.
• Medical payments coverage – This policy will cover the medical bills of you and your passengers.

There are also a bunch of extras. They include rental reimbursements, roadside assistance, new car replacement insurance, full glass coverage, and rideshare insurance.

What Car Insurance Doesn’t Cover?

Car insurance plans cover many events, however, there are some events that you won’t get coverage for. Below are some of them.

• Damages to your car due to war, terror attacks, invasion, mutiny, rebellion, and other forms of civil unrest are not covered by a standard insurance policy. You might be able to get a special plan to cover your car against such events from some insurers, but it is unlikely you will get such coverage.
• Deliberate acts to cash in your insurance payment would only get you in trouble and on the blacklist of most insurers in the US. You would also have a hard time claiming your insurance payment.
• Damage due to gradual wear and tear is not covered by the standard plans of insurance companies. However, you can easily request for an insurance plan that will provide coverage for this.
• Most car insurance companies will not provide you coverage or pay your costs if your car is driven by a person without a valid driving license.
• If your car gets damaged as a result of negligence e.g oil leakage or using worn-out tires, you’re less likely to get anything from your insurer.

How much does car insurance cost?

The average cost of auto insurance is $1,548 per year. However, you might only need to pay just $885 per year for standard insurance plans. Car insurance plans from leading insurance companies like Geico come at a good rate of $1,168 and upwards.

How to get car insurance

There are several leading car insurance companies in the USA with some of the best rates. Companies like Geico, State Farm, and USAA have some of the best rates, however, when searching for car insurance companies, you should compare the rates of two or three insurers and go for the one with the best rates, the best policies, and the best track record.