Types of Car Insurance: Everything you Need To Know

February 4, 2020

You get car insurance when you buy a car but are aware of the different types of car insurance.

Are you looking out for the ways to get benefit from car insurance and the types of coverages?

The car insurance policy is totally dependent on your car model and your budget.

Here are the most common types of car insurance:

1.) Collision Damage

In case your vehicle gets damaged in a collision then coverage of that collision will be given by the car insurance company. Car insurance policy helps you in covering the damage from potholes they will not cover your mechanical damage or any kind of normal aging problems that occurred in the car with time.

For eg., if the transmission of your car blows out then collision insurance is of no use and get it fixed. And if your car is old then you can skip this investment.

vehicle-insurance

2.) Personal Injury:

Personal Protection injury helps covers the complete family, whether it is you or your family member with injures no matter whose fault it is. They will never investigate the person responsible for this accident. All the medical and rehabilitation expenses are covered in this process including the work loss benefits or funeral expenses.

3.) Gap Insurance:

Gap insurance is defined as the insurance in which all the difference is covered between the amount owed and worthy amount of the car which has to be deposited by the car insurance company.

The value of the vehicles gradually decreases and secondly you take them off after we purchase or lease them. If a very small amount is put down on a car then it is possible that the amount of the loan might be more than the market value of the car. So Gap Insurance is an insurance that helps to cover the difference between the reduced worth of the car and the loan amount.

4.) Liability Insurance:

The meaning of liability is that you are legally responsible for the particular car. In this type of insurance, you are legally responsible for the car accident.

There are two types of liability which are: Bodily damage and damage to property.

(A). Body Injury:

If an accident occurs because of your fault then body injury liability will be covered to the other party including the medical expenses, lost salary, and all the pain and the sufferings.

(B). Property Damage:

This type of car insurance in which you cause any kind of damage caused by you to other person’s property due to collision of cars then this insurance helps in covering cars, items like fences, lamp boxes, etc.