What Does Car Insurance Really Cover? The definition of car insurance is basically, a policy which protects you from financial loss in case of accidents involving your vehicle. Car insurance covers you for property damage and bodily injury claims filed against you by other parties after an automobile accident.
There are different types of auto insurance policies available in the market. It is therefore important that you understand the basic concepts behind these types of policies in order to choose a policy that will be suitable for your vehicle.
In the UK there are different types of car insurance policies available such as third party only, comprehensive and home insurance. You can choose the right one depending upon your financial needs and preferences. However, most people prefer to purchase a home and third party only insurance as they require minimum coverage and it is easy to obtain it.
Car insurance also covers injuries which are caused to you by another driver while driving your vehicle. Injuries caused by traffic collisions are included in this category. Therefore, car insurance covers injuries caused by you when involved in a car accident. It is also compulsory in most countries to buy vehicle insurance.
Medical expense and rehabilitation expenses are also covered under medical insurance. Most states and jurisdictions have laws which state that medical costs, rehabilitation expenses and medical payments are covered by a medical insurance policy. Medical insurance also pays for medical bills that are covered under the workers compensation law of most states.
Another type of insurance is liability insurance, which is similar to third party insurance. This type of insurance covers you in case you are found liable for the injury or death of a person or damage to the property of another person caused by an automobile accident. Liability insurance is not compulsory but is generally required for every person who owns and drives a vehicle in the United States of America.
Car insurance does not always cover the cost of damage to your car in an automobile accident caused by another driver. In order to compensate for damages to your car, it is usually required that you carry with you comprehensive coverage in case you have other vehicle. It is necessary to understand what exactly are the coverage provided by the comprehensive coverage and what it does for your car.
Home insurance on the other hand covers you for damage or loss of your personal property in the event that you suffer a loss in your house while you are inside your home. In most cases the loss of your house is covered by the home insurance but not all home insurance policies cover this.
Comprehensive coverage is also known as the replacement cost coverage. It is the amount of money that is paid by you to replace your damaged or destroyed personal property in the event that it is totally destroyed or damaged beyond repair. This amount is paid by you, even if you have to pay all the repairs or replacement costs yourself or even take help from someone else.
Car insurance provides protection against loss of use of the car, and the cost of repairs to the car if it is stolen or damaged in an automobile accident. It also covers you if you are in a car crash and cannot drive it because of a serious injury. In case you have to hire a private or public driver to drive your car it for the time being then it is recommended that you purchase this type of insurance as it will cover you for the cost of the time that you are unable to drive your car.
Another type of insurance is that of personal injury protection, which protects you from liability or other losses caused by someone else caused by an accident caused by your car. If you have an uninsured motorist policy in place when driving you car then it will cover any damages caused by the other driver’s fault if they are in an accident and hurt you.
The cost of car insurance will be calculated based on the number of kilometers you drive your car, the type of vehicle you drive, its engine capacity, the weight and any additional extras that you add to it. A comprehensive and liability policy is a good way of insuring your vehicle, but it is advisable that you compare various insurance quotes before buying one.