Understanding Car Insurance
When it comes to vehicle insurance cover, not all insurance policies are the same. Appropriate insurance coverage for your car can depend on a number of variables, age of the vehicle and number of people who drive it, for starters.
Car Insurance and the Cost to You.
Cheap auto insurance covers you for the least amount of protection in the case of a motor vehicle accident. Regardless of your driving skills or record, you should always get the most amount of motor insurance that you can comfortably afford.
If you have no insurance, even the most basic, you will probably find yourself incurring the cost of any medical needs of any third parties involved in the incident.
People with pristine, accident free driving records, still get injured or killed in driving accidents. It is the idiot that rear-ends you at 100kms/hr whilst talking on their cell phone, that makes the difference.
Being covered for the bare legal minimum of auto insurance, without actually understanding what this means, could leave you open to all sorts of liabilities in the event of an accident.
The best insurance cover for cars you can get, is the most you can afford. Understanding car insurance should be a bit broader than that which is the legal minimum.
Let us imagine that you have just run into a parked car, do you know whether or not the minimum legal insurance covers you for this? Remembering that this legal minimum can differ from state to state and country.
Car Insurance Categories
Here we will briefly look at the different vehicle insurance liability coverage commonly available.
If you have the minimum legal requirement of auto insurance, you are protected no matter who is at fault. The coverage amount is determined by your own insurer.
This will protect you only in the case of medical costs.
Full Coverage or Premium Cover.
As implied, coverage for all things.
This is a premium cover extra and well worth while. This will protect you and your passengers involved in an accident, where the other driver does not have the mandatory basic insurance.
Bodily Injury Liability.
Bodily Injury Liability covers any death or injuries where you are at fault, as the owner of the vehicle. Coverage includes medical, hospital, long-term care, rehabilitation, pain and suffering, income loss, etc. This means injuries or death to any persons inside or outside of a vehicle, caused by your vehicle.
Property Damage Liability.
Covering the damage caused by a vehicle you own, such as to buildings or any part thereof, landscape features like gazebos, fences and similar, any other vehicles. Usually, property damage liability and bodily injury liability are combined in the one policy.
Getting the cheapest or least amount of auto insurance you possibly can, may very well make you feel particularly clever. However, when we consider just how unpredictable things can be on the road, being very clever about your insurance will not help you when you find yourself in financial straights, when for a few dollars more you could have had better coverage.
The types of insurance cover for cars available is a bit of a grey area for many people and, this article is for furthering any information the reader may already hold. It is not nor does it pretend to be, a legal reference document.