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?
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.
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.
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.
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.
There are also a bunch of extras. They include rental reimbursements, roadside assistance, new car replacement insurance, full glass coverage, and rideshare insurance.
Car insurance plans cover many events, however, there are some events that you won’t get coverage for. Below are some of them.
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.
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.