What are the different types of insurance and when do I need them?


Any type of accident, especially those that involve cars requires a huge amount of money. Not only will you have to spend money in repairing the damages due to the accident but you may get be charged of a lawsuit because of the loss of property and even life. While accidents are sometimes uncontrollable, there is one way that you can in a way reduce the very bad effects on these unfortunate occurrences. Make it a rule of the thumb to always drive with an active insurance policy.

There are two main categories of car insurance; the comprehensive coverage and the collision coverage.  While the collision coverage pays for the damages which happened to your car due to the collision with a tree, another car or some other objects, the comprehensive covers all the damages inflicted in your car besides the ones that are included in the collision coverage.  This type of insurance covers damages due to theft, vandalism and natural occurrences such as flood and hail and flying objects such as birds and other animals. 

Before you take either a collision or a comprehensive coverage, it is important that ask about the deductible that you have to pay for. The deductible is the money that a policyholder is willing to pay to his provider before he can receive money from an insurance claim. Typically, deductible ranges from $250-$1000.

Aside from the common collision and comprehensive insurance, there are other types that you may want to check on. This might be the right insurance you need all along:

The Medical Payment Coverage shoulders the hospital and funeral expenses for the insured and the person that had been killed or injured due to the accident. The coverage of your health insurance is almost the same with your medical payment coverage.

The Rental Reimbursement coverage shoulders the damages on a car which had been rented. If you travel a lot and rents a car on your trips, this is an insurance that you should take. Usually, rental reimbursement coverage is bought on a daily basis with a total maximum. Say, if the daily rate is $30 that would be $900 in a month.

Make sure that you read the fine print of your policy and should you find something which is not that clear to you, have it answered immediately and the best person to do that is your provider’s representative or agent.

Make it a habit to hit the road with the right protection and security.