Car Insurance - Prevention Is To Protect Yourself

by : Ske Chay

One of the first and most important things to do when purchasing a new car is to get a car insurance policy. In most countries, every vehicle needs auto or car insurance and this is required under the law.

It provides protection to the car and compensates the driver and other passengers on any damage or injury sustained or caused to others in an accident as well as other occurrences such as theft, vandalism and other unforeseen circumstances. Without proper auto insurance, the owner has to bear the full cost of these payouts.

Here is some information on the various types of car insurance available. These include personal injury protection, bodily injury and liability, medical coverage, collision, comprehensive, uninsured or underinsured motorist and rental reimbursement insurance policies.

A personal injury protection auto insurance policy is sometimes known as the "no-fault" coverage. It pays the driver and his passengers for medical expenses and treatments as a result of a car crash, regardless of who may have been at fault. Some of such insurance policy also reimburse on the replacement of services, lost earnings and even funeral expenses.

The bodily injury and liability car insurance is imperative to have as a driver. It covers any bodily injuries or property damages to others that may occur during an accident, for which the policy owner is the responsible party. Bodily injury damages include medical treatments or lost of wages whereas property damage includes damaged or loss of use of property.

Medical coverage focuses on the driver and passengers of the car. This type of protection policy will pay for any reasonable or necessary medical treatments and expenses for the driver and passengers. In addition, it may even be extended to include disability or pain and suffering compensation.

A collision car insurance policy pays for the cost of damage caused by a collision to the insured car that may affect its book value. This will include damages caused by another vehicle or any other stationary or movable objects.

A comprehensive auto insurance package pays for damages caused by theft, vandalism, fire and various natural disasters like wind, hail, flood, storm or lighting strikes.

Uninsured or underinsured motorist auto insurance will pay for any cost to an insured person, who is injured in an accident, caused by another person, who is uninsured or does not have enough car insurance to cover the full amount of the damages. This will also include a hit and run accident.

In the event that a car is damaged due to a vehicular accident, a rental reimbursement policy will pay a daily allowance for the fees incurred to rent another vehicle.

The price or premiums of the car insurance may vary widely with different insurance companies. There are several factors that may lower the premiums and these include:
a) clean driving records such as never involved in any accidents or no speeding tickets
b) the price of the car and the cost to repair the car or replace its accessories in the event of damage, theft or destruction
c) the purpose or usage of the vehicle as well as the frequency of using it
d) opt for the least number of installments to pay the premiums such as half yearly or even annually as monthly installments are the most expensive
d) drop the collision coverage as the vehicle gets older or is priced lesser

There are some car insurance companies that give multi-vehicle discounts or lower rates if there are two or more vehicles to be insured. It is also a common practice for these companies to give competitive discounts to drivers over 55 years of age or those who complete the safety driving courses with very good grades. Nevertheless, a responsible driver always puts in an effort to ensure an accident-free life on the road.