As you may already know, having car insurance not only a mandatory but also a responsible thing to do for any car owner or driver. In a few words, car insurance is one of the best ways to preserve your family’s well being and to have peace of mind at all times.
A basic car insurance policy comprises six types of coverage. One of the key coverage is the civil liability coverage, which protects the insured person for bodily injuries or property damages in case of an accident. This coverage pays for consequences of the incident, so the person insured doesn’t have to pay directly from his or her pocket. The coverage offered by the bodily injury liability and the property damage liability include repairs of the cars involved in the incident, hospital and medical expenses of the people affected, among others.
This coverage is also a key one to have on any car insurance policy. Many people pass on it for money-saving reasons, but in reality they end up paying more when something unexpected happens… and they realize they are not covered by their insurance.
This coverage reimburses the person insured for losses due to incidents other than a collision with another car or object. Therefore, this coverage pays for events such as theft or vandalism, earthquake, fire, flood, hurricane, rainstorm, and other natural disasters. The coverage also includes damages occurred to your car during a riot or any other acts of vandalism.
This is an elective type of coverage that also pays for all repairs your car needs in any event that might occurred while on the road with animals such as birds, crows or cattle.
You should also know the comprehensive coverage will reimburse you for commuting costs while your car is repaired or if your car is stolen. In this case, this coverage will pay for the cost of commuting and transportation while your recover your car or get a new one, and while the claim is being processed. Your life can’t simply stop because of an incident out of your control, so this comprehensive coverage always comes in handy.
Like we’ve said before, this type of insurance coverage is elective, but in most cases is mandatory for those with a car loan or for people with a car lease. The financial company might require this coverage as a condition to obtain the car loan. In other words, this is their way to better protect their property.
Many people believe their premium will increase greatly if they include this coverage on their car insurance policy, but this is not totally true. The key to pay an affordable premium and have peace of mind is on the deductible established on the policy. Take the time to decide a deductible amount you can comfortably pay in case any unpleasant event occurs. The one agents recommends the most, and the most popular among drivers, is a $500 deductible. On the other hand, please remember that the market and the value of the car will determine the limit amount of coverage.