Car insurance protects the policy holder (usually the owner or driver of the vehicle) from financial loss in the event of a car accident. For this protection the policy holder pays a monthly premium which depends upon a number of factors such as the driver’s age, the vehicle being insured, the driver’s history and the driver’s location to name a few.

There are currently various different types of car insurance to protect the plan holder from costs associated with damage to the vehicle, property damage and injury to persons involved in an automobile accident. The different types of cover include:

Liability cover which pays for damages to other people or to their property as a consequence of a car accident and that also covers any court costs involved. In a lot of states liability cover is the absolute minimum required before you may drive a car on public roads.

Collision  cover which will pay for damage caused to your own vehicle in the event of a collision with another car or other object.

Comprehensive cover which is designed to pay for several forms of damage including theft, fire, vandalism and damage resulting from severe weather.

Medical cover which is designed to pay for medical expenses for injuries sustained in an automobile accident.

PIP (Personal Injury Protection) cover which provides payment for medical expenses when an injury is sustained during an accident, regardless of whose fault it is.

Uninsured and under-insured cover which will pay for any damages sustained to you when the other driver in an auto accident is not adequately insured.

Each state draws up its own set of rules governing car insurance and some kinds of insurance are mandatory in each state while others will be optional. Some states, for example, only require you to carry liability insurance while others insist upon personal injury protection insurance cover.

Additionally there are several states which are considered ‘no-fault’ states where policy holders can recover any financial losses from their own insurer, regardless of who is found to be at fault in an auto accident.

Ensure that you are carrying the right form of car insurance by letting the experts give you a free and no-obligation cheap car insurance quote today.

Filed Under Car insurance
Tags: , ,