As a car owner, having car insurance is a must to protect your vehicle as well as yourself in the event of an accident. However, many people are confused about which type of auto insurance they need. There are several different types of auto insurance, such as liability insurance, collision insurance, and comprehensive insurance coverage. Let's take a look at each of these types of auto insurance and what they have to offer.
Insurance Liability
Liability insurance is the most basic type of car insurance and must be owned by every car owner. This insurance protects you from financial loss in the event of an accident that is caused by you and harms third parties, such as other motorists, pedestrians or property. Insurance is obliged to pay the cost of repair or replacement of damage or injury that occurs to third parties.
However, liability insurance does not protect your own vehicle from damage. Therefore, if your vehicle is damaged as a result of an accident caused by yourself, you must bear the costs of repairing or replacing the vehicle yourself.
Collision Insurance
Collision insurance is a type of car insurance that protects your vehicle from damage due to accidents with other vehicles or other objects such as electric poles or fences. Collision insurance generally covers the cost of repairing the vehicle or even replacing it if the vehicle is seriously damaged.
In the case of an accident, the cost of repairing the vehicle can be enormous and weigh on your finances. By having collision insurance, you don't need to worry about the cost of repairing or replacing the vehicle because everything will be borne by the insurance company.
Comprehensive Coverage Insurance
Comprehensive coverage insurance is the most complete type of car insurance and protects your vehicle from damage caused by things beyond your control such as theft, damage from natural disasters, and so on. This insurance covers all costs of repairing or replacing your vehicle damaged by an accident, crime or natural disaster.
In some cases, comprehensive insurance coverage may also cover the cost of renting a replacement car while your vehicle is being repaired. However, because comprehensive insurance coverage protects you from greater risk, insurance premiums for this type are usually more expensive than other types of auto insurance.
Conclusion
Choosing the right type of auto insurance is very important to protect your vehicle from the risk of loss and your finances. Liability insurance, collision insurance, and comprehensive coverage insurance all have their benefits and drawbacks. Before choosing the type of auto insurance, be sure to consider your own needs and circumstances. Also do the premium costs and insurance policy limits before deciding which type of car insurance is right for you.
As a suggestion, make sure you choose a car insurance company that is trusted and has a good reputation in providing fast and easy services and claims. By having the right car insurance, you can feel calm and protected from unwanted financial risks in the event of an accident or other unforeseen event.