With the different kinds of car insurance coverage being offered, one might get confused and may just end up with the wrong policy. One way for you to decide on the right kind of policy you should take; you must have a basic knowledge regarding the different kinds of auto insurance coverage. Aside from getting familiar with the different policies, you too should check out the advantages of choosing a certain insurance coverage.
To give you an idea of the most commonly purchased insurance policies; here is some of the basic information about them.
The collision car insurance is one that covers all the damages that had been incurred by the insurer which was caused by a collision. With this type of coverage, a deductible is usually being applied and the car owner can have the discretion to go for a higher deductible so long as he is able to afford it. The good thing about high deductible is that it lowers down the premium. For old car owners, it would not be a recommended thing to do to take collision insurance since the amount of payout is equal to the value of the car. For leased or financed car, this type of insurance is usually a part of the loan agreement. So whether this is not the type of insurance you personally would want to purchase, you have no choice but to have it when you get your car through financing.
The Liability car insurance covers all the damages that had been caused to other properties with the insurer being at fault. In the country, such type of insurance coverage is mandatory. Though it is mandatory, each state has its own limitations regarding its policies. With liability insurance, there is what is called the property damage insurance which will cover the damages that had been inflicted on the car or to the other properties when the accident took place.
The insurance which covers the non-collision damages is called comprehensive car insurance. This is another type of insurance which financing companies require their clients should they take a financed car. Vandalism, theft, fire and other natural calamities are the coverage of such insurance.
There are some other types of car insurance coverage out there and it would be better if you ask your provider which one fits you the most. Though they can give you some recommendations it would still be you who knows best what kind of driver you are and what are your insurance needs.
