Recommended auto insurance cover and extent of cover for your need


There are various reasons to purchase insurance apart from the obvious reason to keep your vehicle road legal. A good insurance policy can protect you from massive losses in the event of an accident and also protect you from the trials and tribulations of legal hassles; insurance companies also assist you in lawsuits that arise from a car crash. 

Custom made insurance policies 

The trust is no two individuals are alike, and no two individuals have the same needs as another person. Everyone needs basic insurance, but what about the cover, the extent of cover, deductibles and discounts?  Insurance companies serve you bulk plans based on your rough usage pattern and your vehicle type; however this is rarely enough.  Most people realize that they don’t have the right insurance plan when it’s too late, after an accident. No professional can custom build the right plan for you, you either need to do it yourself or get a family member or friend who knows and understands your needs completely to do it for you. 

Pick what you need 

Pick out cover you may need, and then decide on the extent of cover you would need. The extent of cover is directly proportional to the current value of your vehicle, as well as your usage. Deductibles again vary depending upon the current value of your car and your driving record. The trick to getting a good insurance plan is to understand your needs, don’t go by what the insurance salesman says since he or she is working for a commission and will suggest whatever gets them a higher commission. Alternatively going with the state minimum isn’t advisable either, the state minimum is the bare minimum cover you can buy and is never enough to recover your losses after a crash. 

Types of cover 

Liability: Liability insurance covers accidental collision damage caused to the third parties self or vehicle in the form of medical bills, remuneration for lost wages and repair bills for their vehicle. Liability cover is mostly the minimum requirement for your vehicle to be legal on the road. Decide upon the extent of cover; don’t settle for the state minimum unless you are prepared to shell out wads of cash if you ever meet with an accident. If you have a big vehicle like a truck, you’re better off with a higher extent of cover.

Collision: Collision insurance covers accidental collision damage caused to your self or vehicle in the form of repair bills. The payout is based on the extent of your cover minus the deductible amount. The deductible amount can be set by you when your take a policy, the higher the deductible amount the lower your premium will be and vice versa.

Comprehensive: Comprehensive insurance covers against accidental non collision damage such as backing up into a garage door or damage due to vandalism or natural disasters. The extent of collision insurance need not be too high since such damage doesn’t tend to be too costly to repair, except for theft of the vehicle.

Underinsured or uninsured: Underinsured or uninsured insurance protects you in the event of the third party not having insurance or having inadequate insurance to cover your medical bills and workshop repair bills

Extent of cover

The extent of cover should be decided upon using the above mentioned guidelines while keeping in mind the current value of your car in the market. Don’t get too much or too little cover.