What are the essential facts about insurance coverage that every driver must know?


In order to be able to decide which car insurance policy to avail of, there are several things each driver / vehicle owner must now.

First, one must have an understanding of the various types of insurance coverage. The basic types of coverage are. There is the Liability Coverage which offers protection in scenarios when bodily injury is caused by accidents, or covers damages done to properties.

How much coverage is provided depends on the jurisdiction. There is also the Full Coverage, which is further categorized into two: Collision coverage and Comprehensive Coverage. The previous pays for damages to your vehicle, or to the third party’s vehicle in the events of collision. The latter covers damages done to the vehicle by outside factors and causes other than collisions. These two (Liability and Full Coverage) are not required in the United States.

The Third Party Coverage, on the other hand, is what is required in most of the states. This is the most basic type of coverage, and the cheapest. However, it also has the most limited coverage. It covers only for damages done to a third party, if you are the driver at fault. Also, it covers expenses in the event you were involved in an accident.

Next, one must have knowledge of the car insurance requirements in your specific state.
Take note that coverage requirements vary from state to state.

Third, every driver should be able to gauge and evaluate all possible factors that may affect the type of insurance most appropriate for him or herself. Some of these factors are make / model of vehicle, driving history, gender, driving route / mileage, age, etc. It is important to assess these factors. An example: say you are a retired senior. The mere fact of your retirement may mean that the frequency of your driving will be greatly reduced.

Because your driving frequency has lessened, your probabilities of being involved in accidents will therefore also have decreased. All these things, when taken into consideration, will all boil to the conclusion that you will not need full coverage (which is, to say the least, the most expensive type of coverage).

Fourth, comparing policies from different insurance companies is a staple. Companies’ coverage offers vary, and if you would be wise, you would compare policies.

Because every driver is required to get coverage, knowing these things are important for one to decide on which coverage to avail of.