Auto insurance is one of the most popular types of insurance taken by millions of people around the world to safeguard the damages and liabilities on their vehicles. It is more a necessity then a luxury and acts as a safety net for your automobiles. In simple terms, auto insurance is, like any other kind of insurance, gets you insured against damage, in this case your vehicle damage. It is an agreement between you and your insurance company whereby you need to pay a premium regularly and in case if your vehicle gets damaged in the event of any accident, the company will pay all your liabilities. The amount of liability depends upon the nature of the coverage plan.
Auto insurance needs you to get acquainted with two terms, the first one is premium, the amount that you regularly need to invest with the insurance company and deductible and the second term is deductible, and the amount you are liable to pay in case of any liability on damage to your vehicle. The deductible amount is mentioned beforehand in your insurance policy. Different insurance companies have different coverage plans and the damages that each of these plans cover also differ. So some of the insurance plan covers expenses on accidents and damages and pays the repairing cost, legal fees or any kind of medical coverage while the others include the liability when the car gets stolen or is somehow vandalized. You can save money on auto insurance with American Automobile Association
Types of Auto Insurance Coverage
As mentioned earlier, auto insurance is a wide term and includes a variety of coverage at different price. Some of the different and more popular types of coverage offered by auto insurance companies are listed below:
Liability if the Body gets injured:
One of the most commonly preferred coverage plan, the bodily injured liability is a type of coverage that includes expenses related to medicines, hospital bills, treatment costs, operation costs, lost income due to the accident and in some cases may even include the funeral expenses of those, who have been injured by your vehicle. This kind of insurance finds preference among many people since they even cover the legal expenses as well as any cost related to it.
Property Damage Liability:
Another popular coverage, this coverage plan includes any kind of liability that falls upon you by damaging anyone else’s property and includes all the repairing charges.
Liability on Collision:
Irrespective of whose fault it is, this kind of insurance safeguards you against all the damages that might have taken place due to collision with other cars. This includes your car as well as the other person’s car and even arrange for reimbursement if it has not been your fault.
This is a comprehensive insurance package that includes everything other than collision. This may include theft, vandalism, fire, natural disaster, animal attacks and more.
These are only some of the coverage plans. You can compare the coverage costs of various insurance companies and then decide the one that cater to your need as well as your budget. Accidents are something that always happens without any predictions and you really need to take the help of auto insurance to evade the consequences of it.