Car insurance is basically insurance for automobiles, trucks, motorcycles, and any other street vehicles. Its main function is to give protection from physical damage or personal injury caused by road accidents and against legal liability that may also arise from road accidents. It takes different forms and comes in many types of policies. This implies that it also varies with different vehicles as well.
There are two types of car insurance, third party and comprehensive. The third party only covers for damage that you cause to another person or his property and the comprehensive one takes care of your vehicle, its parts, and their damage. Generally, the more costly type of car insurance is the one that covers not just for the damages caused to vehicles and their property but also for injuries caused to people in road accidents and to the property of others. This is also applicable for the medical expenses and damage to vehicles that are in the direct collision.
Every car insurance company has different ways of calculating the rates for insurance. Most car insurance companies base the cost of the policy on the risk involved in the vehicle. In other words, the higher the risk involved, the higher the premium. It means that if you drive an old vehicle, the rate will be high, if you drive a four-wheeler sports car or a high performance vehicle, the premium will be very high. The rates can also go up if you drive in bad weather conditions, take hazardous roads or take part in activities like speed driving, or driving while intoxicated or driving under the influence of alcohol.
There are also different levels of coverage provided for different vehicle types and drivers. For instance, there is comprehensive and uninsured motorists coverage. Comprehensive coverage pays for the damage caused to the insured vehicle and the medical expenses incurred due to theft or damage due to an accident by an uninsured driver. Uninsured motorist coverage, as the name implies, pays for the damage incurred by drivers who are not covered by automobile insurance like passengers or strangers.
Another type of insurance coverage is liability coverage, which will pay for the medical expenses, if you get involved in an accident with someone who is at fault. Collision insurance covers the repair or replacement of your vehicle if it is damaged due to collision with another vehicle or object. Collision policies also provide you with financial protection, so that you can replace your vehicle without any trouble.
Medical coverage will pay for the cost of the medical bills if you or your passengers are injured in an accident. Some states require that the medical bills should be paid by the insured, while others let the insurer cover them. However, some states allow the insurer to make payments only after the deductibles have been met. This means that the deductible will be an amount that you have to pay in the event of an accident.
One type of insurance that not many people know about is comprehensive or collision insurance. This offers cover for damages caused to the vehicle in an accident, such as theft, fire, vandalism, and impact with an animal. It also covers damages resulting from flood, windstorm, earthquake, vandalism, and collision with an oil tank or fire. This is a very important type of coverage because it ensures that your vehicle remains protected during different kinds of incidents.
Finding the right amount of coverage for your auto insurance may be easy. In fact, there are multiple ways by which you can get the information you need on the right amount of coverage for your vehicle. You can visit a local agent and discuss your needs with him. Most agents offer services that will give you the quotes you need, on the state of affairs regarding automobile insurance coverage. You can get all the information you need on the right amount of coverage by visiting a number of websites online.