Understanding the Features of Your Car Insurance

by : Ajeet Khurana

Isn't deciding upon a car insurance coverage as simple as choosing the right car to buy? At least, many of us think so while purchasing a car.? The fact is that car insurance can actually be pretty complicated. Many people simply nod their head and make their monthly insurance payments but they don't really understand what their coverage offers them.Car Insurance BasicsYou will mostly be offered liability coverage when you buy your car insurance.? This is the basic coverage that you will find with any insurance policy and basically what this coverage does is pay for the bodily injury and property damage that is caused to others involved in the accident that you are at fault for.? Bodily injury coverage includes payment of medical bills and lost wages whereas property damage includes the payment for repair or replacement of the property that got damaged in the accident.? This coverage does not pay for the damage that happens to you or your vehicle.? Liability insurance is often broken down into numbers such as 20/40/10, which means that your coverage includes $20,000 in bodily injury, $40,000 in bodily injury per accident, and $10,000 in property damage coverage.Collision coverage is different from liability coverage in one respect. Not only does it provide cover for the repair of your vehicle but it also helps to repay the damage caused to other vehicles and people hurt by you.? With this type of coverage you won't be able to receive more than the value of your car, but you will get something to put toward repairs or replacement of the vehicle.? The most expensive type of coverage is this one. But if you select to have a high deductible you will be able to keep your payments down and still have this coverage that you need if you are involved in an accident. Collision coverage is ideal coverage. This is because it covers damages to your car such as fire, theft, natural disasters, and/or hitting animals in the road also.As a part of your car insurance policy there are other coverage options that you might choose from.? One such option is medical payment coverage.? This coverage will pay for your as well as your passengers medical expenses when you have been involved in an accident.? In my experience, you may also consider to procure PIP i.e. personal injury protection coverage.? This coverage can help pay for those medical expenses but will also help you if you are unable to work, unable to take care of your kids, or if you have to pay for a funeral.Coverage such as uninsured or underinsured motorist's coverage may also be considered by you.? This coverage will help you pay for damages if you are struck by an uninsured or underinsured individual.Other options that you may want to consider are rental reimbursement if you have to rent a vehicle because yours is in need of repair or stolen, towing and labor coverage, and gap coverage, which is coverage that pays the difference between the cash that you receive for a total car and the amount left on the car loan.? You may consider these as add on features. They provide great help when you are in any of these situations.