Car insurance has always been a tough nut to crack for most of us and in this article, we try to simplify some of the things that will help you go a long way. Types: Before delving into anything, it’s imperative to know the nature of car insurance that we have.
Liability Insurance: This policy simply covers the damage to other vehicles or the medical bills of other people. It’s all about the other party involved in an accident.
Comprehensive Coverage: Right off the bat, this doesn’t include everything. This policy protects the damage to the vehicle from any sort of vandalism riot, or hitting an animal.
Collision Coverage: In simple words, collision + comprehensive = Full coverage
Personal Injury Coverage: It’s popularly known as the ‘No fault coverage’ that covers you as a policyholder no matter whose fault it is.
Uninsured/Underinsured Coverage: This policy covers you in cases where the driver who caused the damage himself is not insured or is insured but cannot cover the entire damage.
Gap cover: This is basically introduced to fill the gap between the insurance amount and any car loan/lease that you have to pay.
Add-on/Options: There are certain elements that your insurance simply doesn’t talk about, to name a few:
1. Regular repairs
2. Ridesharing
3. Damage exceeding your limits
How much do you need? This is probably the most complex part to answer! For starters, every state has a minimum insurance limit that you have to have but it’s not necessary that your policy covers all the damage. So for that, you need to have something extra! The extra element varies from person to person depending on many factors, so it can be best decided by you as an owner, driver, and policyholder, which policy to choose and which one to discard.