The Types of Car Insurance Coverage’s
Before you begin the process of searching for auto insurance, you need to know the various types of insurance coverage’s available to you. You will have to decide on which type of coverage is best for you, depending on your current situation. There are policies which will cover you and your vehicle, and then there are some that will cover only damages done to the third party vehicle. If you can afford the high cost of insurance, you could add extra coverage on your file to protect you from other damages as well.
Third Party Collision Coverage: This type of insurance coverage is the basic coverage, which every single car owner must have. There is not a single plan which does not include this coverage. Third party collision coverage will not cover your own vehicle, as it will only cover damages that you cause to another vehicle. If the driver of another vehicle is hurt, your insurance company will have to pay for medical bills and treatment to cure that person. So, you are not responsible for the financial struggle you put on the third party. Third party collision coverage is best for you, if your vehicle is not worth so much. If you have an old vehicle, it could be a waste of money to pay for a higher coverage, to insure such a vehicle.
Comprehensive Coverage: If you have a comprehensive coverage plan, you can rest assured that your vehicle will be covered. If you are hurt, you can claim for medical bills and loss of salary due to work. This type of coverage plan will include third party collision damage as well, since it is mandatory to have it. If you are in an accident in which both your vehicle and that of the third party is damaged, your insurance company will cover costs for both vehicles. As a result, your insurance premiums will increase incredibly, but that is something you have no control over. If you have a new expensive car, it is the best option to get comprehensive coverage, to protect your investment. Additional things you are covered against are fire, theft, vandalism and natural floods.
Property Damage Coverage: In a situation where you damage someone else’s property, your insurance company will cover the costs of repair. When we say property, we not only mean vehicles, but homes as well. You could damage someone’s house, fence, backyard or patio. In any case, if you are covered for third party property damage, you don’t have to worry about paying for the damages. This is an additional type of coverage, which you have to purchase.
One thing you have to remember when it comes to a claim is that, you have to pay the deductible on your file. Some people believe they are great drivers, and when they set their deductible, they put down a higher sum of money. When the time comes to pay the deductible, you have to be financially ready to do so.