Different Types Of Car Insurance

You spend a fortune in buying your dream car. And when damage or an accident happens, it drains you financially even more. In times like this, it is good to have an insurance policy that covers all the costs. But insurance policy is not that easy to buy. There are different car insurances available in the market and you can also buy online car insurance. To begin with, there are 7 types of car insurances available in the market.

1) Liability insurance: In case, you are in an accident and your fault is established, this insurance covers the cost of repair of damage of any property in the accident. Also, it covers the medical bills of the injured. Though there is a minimum amount of liability insurance that you absolutely must carry, it is better to have a higher coverage. This is save a lot on your pocket, especially in the case of a complete disaster.

2) Collision insurance: If you only carry liability insurance, chances are after the accident, you will still have to empty your pockets for repairing your own car. The collision insurance covers you for that. If your car is completely damaged in the accident, the insurance cover will pay you the value of the car. But, if your car is old enough, collision insurance may not be a good idea. It may not be worth the insurance. But if you have a brand new, expensive car, it might be the good idea.

3) Comprehensive insurance: The accident is covered by liability and collision insurance, but if any unforeseen incident happens, like theft or animal collision, etc. there will not be any cover. It is these times that the comprehensive insurance cover comes in handy. This insurance will cover just about everything.

4) Uninsured motorist insurance: If you get in to an accident that isn’t your fault and the other motorist is not insured, he doesn’t have enough to get your car repaired and you don’t have collision insurance, this insurance coverage will cover your expenses.

5) Medical or personal injury insurance: No matter whose fault the accident is, this insurance will cover the medical cost of the driver and the passenger’s personal injury.

6) No-fault insurance: This may not be the one if your car is inexpensive, and you have other insurance options available at relatively low premium. This insurance covers all the accident costs irrespective of who was at fault.

7) Gap insurance: This covers the difference between the actual value of the car and the balance of the loan if taken for paying out the cost of the car.

So many different types of insurance covers are available in the market that it could get confusing if you don’t research properly. So, choose wisely!