These days, you have insurance cover for everything including your house, business, health or even your car. Insurance is the basic need. People forget to insure their cars and only remember after getting into an accident. Having insurance from the day you buy your car is the smart move. The main concern is how to get the right one?
The two most important aspects of having car insurance are protecting your health and assets. There are basically three types of coverage available for car insurance:-
- Liability – This insurance coverage is for any damage, injury or death related claims in case of an accident caused by your automobile. It also insures someone else’s personal property damaged by your car.
- Collision – It is a common insurance coverage for your car, if it meets in an accident or gets involved in a collision. The insurance will cover the repair or replacement of your car’s accessories.
- Comprehensive – This provides coverage in case of theft, fire, vandalism or water for your car. If you have a car loan or have already paid full cash, you might not need kaskokindlustus or collision coverage, if the book value of your car is less than $5000.
In addition to this basic insurance coverage, there are 7 more additional insurance coverage available in the market, they are:-
- Full/limited tort – This is a way to save money on your insurance bills. In this, you give up your rights to sue anybody in the event of any accident, even though you can be sued. Giving up your right is not considered as a very smart move.
- Personal injury protection/medical payments – This may not be necessary, if you already have a proper health insurance. This type of insurance coverage protects you and the other passengers from cost of medical bills in the event of an accident.
- Underinsured/uninsured motorist coverage – This will cover your medical and property damage, if you meet with an accident with uninsured or underinsured motorists.
- Towing – This is basically coverage for towing expenses for your vehicle, if it is immovable after the accident.
- Glass breakage – Many of the insurance companies do not insure glass. Anyhow, it is not worth for a long term cost.
- Rental – This coverage is basically designed to insure the cost of rented cars. It may not be useful, as the rental cars are usually very expensive and may not be worth covering for insurance.
- Gap – Gap insurance provides you a bridge amount between the book value and the amount of money owed on the car.
Some of the factors that impact your rates:-
- Deductable amount
- Age of the driver
- Gender of the owner
- Demographics areas
- Claims for accident prone drivers
- Moving and speeding violations
- Choice of vehicle
- Distance or driving habits
- Systems installed for theft deterrent
- Devices installed for safety
- Training for accident prevention
- Different choices
- Plans for payment
- Credit score