Car accidents do happen, no matter how accurate you’re driving. It’s important to save you car from collision, and your money from expenditure. Car insurance is a very complicated topic and people frequently asked: what types of car insurance are there?
The following information is referring to car insurance topic in the United States.
In the most states it is obligatory for driver to have vehicle insurance, at least with minimal coverage. It is important to know these figures which are differ from state to state. But it would be better to have more advanced insurance in protect yourself and your property to a higher degree.
What is car insurance?
Car insurance is the type of insurance when you sign in the contract with insurance company and you agree to pay special fee called premium, and if any accident happen in the road, insurance company will cover all damage or part of it depending on insurance policy and your contract. You should also pay extra fee in case of accident, it is called deductible. The amount of deductible fee is differ from insurance policy.
If you’re responsible for causing damage or accident, insurance company covers nearly everything – repairs, legal fees, medical coverage for you and sufferers in the accident. Insurance companies also cover costs if your car is stolen.
Types of car insurance policies
Insurance companies, in general, have different coverage types with different pricing and with different types of car insurance claims. There are at least five options:
– Bodily Injury Liability. Covers medical expenditure, lost income, pain and suffering, funeral bills for those who get injury in your responsibility. All legal and court fees are also covered. This type of insurance coverage is obligatory in most states.
– Property Damage Liability. If you’re responsible for causing accident, this type of insurance coverage will cover all damage to another vehicle or object you’ve hit. This type of coverage is also obligatory in most states.
– Collision. This type covers damage to your car in accident with another vehicle. In case of your fault, you have to pay deductible fee. It is optional in all states, but if your car is financed, bank might require you to have this type of coverage.
– Comprehensive. This type of coverage protects you and your car from damages not caused by collision with another vehicle, for example natural disasters like earthquakes, hurricanes, etc. or theft, vandalism, fire. Like Collision coverage, it is optional and might be required by bank or other financial institution.
– Uninsured and underinsured coverage. This type of policy protects you if you’re injured by the driver without insurance caused an accident. It covers all medical bills for you and passengers.
Types of car insurance discounts
There are certain types of car insurance discounts which could be mainly divided into 3 groups:
- Driver discounts
- If you have a good or claim-free driving history (without accidents)
- Auto club participant. If you are member of auto club providing road assistance.
- Low-risk occupation. Some profession representatives has lower accident rates.
- Low mileage. If you driving your vehicle not on the regular basis.
- Vehicle discounts
- Safety equipment. If your car has ABS, air bags and anti-theft systems.
- If you have a hybrid vehicle or working on alternative fuel
- If you have a new car.
- Policy discounts
- If you have insured multiple vehicles on one policy
- Fully paid the entire premium fee
- Using the same insurance company every year
- Combine multiple policies, e.g. car and life insurance
To get insurance quote you might visit online configurators in insurance company websites. To find out the insurance info, you have to know your zip code, driver history, age, type of covered vehicle. The amount of insurance premium fee is depending on these factors. You may find detailed information about special types of car insurance for young drivers in your preferable insurance company.