Auto insurance is taken by most people to keep up with the traffic laws. However, one must understand that auto insurance can save one lot of money in adverse situations. More importantly, the auto insurance coverage can often be very important and the assistance could be critical at some points. However, one must know what the perfect auto insurance for them is. There are many different varieties of auto insurance that one can pick from.
The first type is obviously the collision insurance wherein the coverage is to protect the car. This kind of coverage involves damages caused by collision with another car or any object in an accident. It also covers for damaged caused to the vehicle due to a pothole. The insurance you get is minus your deductible.
There are two scenarios involved in case of a collision. If the fault is on your side, then the insurance company will still you give you the coverage after removing your deductible from the damage repair costs? Higher is the deductible, lower is the premium and vice-versa. So, one can choose a higher deductible if he or she is confident of avoiding accidents. The other scenario is when the collision is not your fault but the fault of the other party. In that case, the insurance company will try to get the other driver’s insurance company to pay up for the damage costs. In this scenario, the advantage is that the insurance company also tries to reimburse your deductible, to ensure you don’t have to spend anything.
The other kind of auto insurance which is very important is the comprehensive insurance. Comprehensive insurance gives coverage for all kinds of damage that do not include a collision with another vehicle or object. It means you get coverage for theft or damage due to natural disasters like cyclones, floods, hail and earthquakes. You will also get coverage for other events like fire or falling objects, vandalism or riots. You will also get coverage in case of a cracked windshield or such other damages.
Comprehensive insurance provides complete charges of transportation that you have incurred because of the damage. Other than that, you will have to only pay the deductible and the rest of the damage costs are paid by the insurance company. Comprehensive insurance is something that is not enforced by the law of the states. However, most people who are cautious about unforeseen circumstances take this coverage as it literally covers for all the damages and transportation costs minus the deductible.
An interesting scenario is that where the other driver is at fault but doesn’t have the insurance to pay you. In such a case, you can go for an uninsured or underinsured coverage where you, a family member or a driver whom you designate will be given coverage in scenarios where the other driver is at fault and has insufficient insurance coverage. The coverage includes all the medical expenses you or the designated person incurs, under the limit of the coverage that you take. The other driver has to be held responsible for the accident legally or the driver is uninsured. Two other cases include a hit and run accident and also when you are hit by an uninsured driver as a pedestrian. This coverage is usually for the extra cautious people who don’t want to depend on whether the other driver has an insurance or not.