Car insurance is the assurance given by insurance company to cover the costs associated with damage that arises due to occurrence of accident. This assurance is given against premium which refers to the sum of money paid to the insurance company on a regular basis, usually monthly by the purchaser of the insurance policy.
That is, when the policy purchaser faces an accident, he or she would have to incur some costs, such as costs associated with repair, legal fees and medical charges. The insurance company shall ask the purchaser to pay a certain sum of money which is known as deductible. Rest of the cost of damages associated with the mentioned factors shall be paid by the insurance company.
There are several types of car insurance. They are priced differently as they have different terms and conditions. Bodily injury liability refers to car insurance whereby all the costs associated with injuries are covered. These costs include medical coverage, lost income, cost of suffering and funeral expense in case of occurrence of death. Property damage liability is when the costs that arise due to harm to other person’s vehicle are covered. These include costs of repair to the other person’s vehicle as well as any other property hit such as lamp post, building or fence.
Collision as the title suggests covers the costs that arise due to colliding with another vehicle. On the other hand, Comprehensive car insurance protects against damages arising from any factor other than collision. That is, damages resulting from theft, sabotage, natural disasters such as fires, earthquakes, thunderstorms, etc are covered. Uninsured and underinsured motorist coverage protects against damage caused by motorist who is uninsured and causes the insured person injury and loss.
Many states make car insurance compulsory for motorists to acquire. So basically why is it so important that most of the state departments are aiming towards achieving 100% of insured motors status?
Car insurance is very important for motorists’ own safety. First and foremost, it safeguards the motorist’s hard earned asset, his vehicle. Due to rising number of cars on the road, highly congested traffic at all hours of the day, most of the vehicles are prone to accidents and the resultant damage. Cheap Car Insurance safeguards the vehicle against damage that occurs due to accident. Moreover, not always everyone has enough cash on hand to cover the medical expenses that arise due to accident.
Car insurance importance comes here when the insured motorist does not have to pay for any medical expense from his pocket. Not only is the monetary cost being saved, but the insured person is saved from the worries and uncertainties created by the emergency situation. Moreover, the most frightening part of the accident, possibility of a lawsuit, is avoided by car insurance. An insured motorist does not have to fear of losing his most prized possession; his vehicle due to a lawsuit.
Hence it is important to have car insurance if one is to feel safe and secure on the road and lead and trouble-free life.