What are the 3 main types of car insurance?
There are three main types of car insurance available: third party, third party, fire and theft, and fully comprehensive.
The Role of Car Insurance in Protecting Your Vehicle
Having adequate car insurance is essential in protecting your vehicle from the unexpected costs associated with an accident or other events. Insurance helps cover the cost of repairs, medical costs, and even replacement of your vehicle if it’s totaled. Without proper coverage, you could end up on the hook for thousands of dollars in damages.
The most traditional type of car insurance is auto liability, which covers medical bills and property damage resulting from an accident that you caused. This type of coverage is available in the form of bodily injury and physical damage liability. Bodily injury pays for medical expenses and lost wages incurred by another driver if you cause an accident. Physical damage pays for any damage done to their vehicle.
Collision insurance is another type of car insurance which helps cover repairs or replacement of your vehicle in an accident. Comprehensive insurance covers damage to your vehicle caused by things like hail, fire, or theft. This type of coverage helps pay for repairs or a replacement of your vehicle if it is damaged by an event that isn’t a collision with another vehicle.
Many other forms of car insurance are also available, such as uninsured and underinsured motorist protection. This helps protect you from the costs associated with an accident caused by someone who doesn’t have car insurance or enough coverage to pay for the damages.
There are many optional types of coverage that are also available such as roadside assistance, rental car coverage, and personal property coverage. Before choosing any additional level of insurance coverage, make sure you understand your needs and budget.
Having adequate car insurance helps save you from potential financial costs associated with an accident and helps you remain in compliance with the law. Stay informed and make sure to read the details of your car insurance policy to understand what coverages are included, what they cover, and how much of it you have.