A Holistic Approach to Understanding Auto Insurance

While you are still young and oozing out infectious energy, the importance of basic road and driving safety might elude your consciousness. But, once the dust settles and you step into your mid-twenties and early thirties, you are confronted with the grim realities of life. Nothing lasts forever. Not even that car you love driving so much. Therefore, it is supremely important that you live your life the way it was meant to be lived, and not throw caution to the wind. Your life might be finite, but that is what gives it meaning.

Why Is Car Insurance Important?

One of the major mistakes that people do, especially youngsters, when they first get control over those four wheels, is not look up on the various auto insurance policies and straightaway make for the road. You must understand that there are several things that you must do before you even take your car out for a spin. Yes, we are talking about auto insurance policies here. You could be extremely cautious about how you drive and conform to all the road rules, but that does not guarantee that you will not find yourself in an accident where your car is also involved. Therefore, we must talk about things that are necessary.

For Your Personal Financial Protection-

Your car insurance is your personal protection and one of the best financial investments you will ever make. It protects you from property damage, injuries and sufferings that depend upon the laws of your state. It also covers the cost of your treatments when you find yourself in an accident and need coverage for your treatment. Your car insurance steps in just at a time when your health insurance caps and is unable to provide for the remaining money.

Besides catering to your treatments, it also looks after the condition of your car. It pays for the cost of getting your vehicle back on its wheels. Also, if your car is the one at fault, then your personal liability and property damage car insurance policy will cover for the cost of compensation to the other party injured in the accident. Think of the ramifications of not having car insurance and being involved in an accident. You are immediately going to find yourself in a web of legal battles and be liable for every cost yourself. Not everyone can afford to pay for the damages and other expenses incurred in the accident from their own pockets. Your PLPD, or Personal Liability and Property Damage will keep you safe from such legal repercussions.

Covers for Damages from Theft or Fire-

It is not only road accidents that should act as a motivating factor for you to get an auto insurance policy, but also other potential threats like fire or theft. These are factors that you have no hand over. But you need to be prepared when such an unfortunate and uncalled for event lands on you. Again, you cannot hope to pay for the damages all by yourself. There comes in the role of your car insurance, where you do not have to worry about what damage and how much damage your car has gone through. You only need to claim the insurance and let your insurance company take care of the rest.

Now that we have covered the two basic points on why car insurance serves like something of a mandate for car owners, we should take some time to look into the types of car insurance.

Types of Car Insurance:

There are five broad categories within which you can place your car insurance- liability insurance, collision coverage, comprehensive coverage, personal injury protection, uninsured/underinsured driver’s protection.

Liability Insurance-

Like the name suggests, Liability Insurance covers for you when an accident happens because of your actions alone. It covers for you when you are to be held accountable. It shall pay the amount required for damage reparations for the car and also the medical bills of the other party who find themselves injured in the accident.

Collision Coverage-

Collision Coverage pays for your car that has been totalled in an accident. This type of coverage suits you the best when you have a car that is expensive or quite new. It is not much of a great idea to opt for this coverage if your car is old and has no significant value in the market.

Comprehensive Coverage-

This kind of coverage caters to all the damage that occurs to your car due to weather or other uncontrollable incidents, for instance, an animal throwing itself in front of you. There are always chances of situations spiralling out of your control, which is why you need to seek refuge in comprehensive coverage.

Personal Injury Protection-

There is no way you should skip out on Personal Injury Protection. You need this to protect yourself and your family if you find yourselves in an accident. It pays for your medical bills and that of your family when your medical insurance caps.

Underinsured Driver’s Protection-

Underinsured Driver’s Protection covers for you when all your other types of auto insurance cap. It pays for all the costs that you are responsible for and when your liability insurance or collision coverage is unable to pay up for them.

There are car insurance phone numbers that you shall get if you just look them up on the internet. They can help you make a better decision regarding the condition and security of your car.

Conclusion:

While opting for a car insurance policy, you must always check every dimension of it. You need to do your research on what kind of coverage you are entitled to, how you can claim them and most importantly, why you need car insurance in the first place. A holistic knowledge is the only key to safety and security, without which you cannot hope to survive in the tough world that is waiting for you out there.