Many of you dream to own a car without a single scratch. However, this is a very difficult proposition in reality. An unfortunate incident may be due to other person’s fault, but this does not deny the fact that your vehicle might be damaged. Considering the above facts, it is good to insure your car. In many places, the governing agencies make it a rule, that all motor vehicles should be insured.
Insurance that Suits Your Car
There are about six types of insurance. Each one of them has their own advantages and disadvantages. The insurance should be based on the following –
- Original cost of the car
- First owner or pre owned car
- Future plans for changing the car
- Resale value for the car
- Brand value for the car
Based on the above criteria, you can choose the type of insurance.
1. Types of Insurance
The following lists the different types of insurance available. Select the best automobile insurance that matches your requirements.
2. Liability Insurance
This is the basic type of insurance. This covers the damages to the car during any accident. This will be covered on the condition that the police issue a statement saying it was your fault. The amount of the insurance depends on how valuable is your motor vehicle.
3. Comprehensive Insurance
This is a total and complete coverage of all damages that occur to the car. The premium in this type will be expensive. It gives a total protection to any unfortunate incidents. This is applicable for theft and damage due to natural reasons like storm, snow etc. You should plan to buy this type only if you are not selling your car in near future. The car also should be highly valuable, and then it makes sense to buy this insurance.
4. Collision Insurance
This is bought along with liability insurance. In liability insurance for the damages occurred due to an accident, you might end up paying yourself. Taking this insurance safeguards your money. However, if the car is quite old and is not worth repairing, then this insurance should not be bought.
5. Underinsured / Uninsured Motorist Protection
In liability insurance, the expenses for the overall damage might not be covered. Though most governing agencies insist on insurance for motor vehicles, many people do not follow. In such cases, this insurance is very useful. Your expenses are not covered by any insurance or even the liability insurance, but this insurance pays up all the expenses. This is the least expensive amongst all.
6. Personal Injury / Medical Protection
This is an insurance, which covers all the personal medical expenses. It also covers the medical expenses of people who are travelling with you. This is a good option to consider in case you do not have a good health insurance plan.
7. Gap Insurance
This is an insurance, which serves well if your car is on loan. You would have to complete your payment instalments on time for your car. Along with this, if there were an unfortunate incident, you would have to pay from your pocket. In such a case, it would be worthwhile considering this type of insurance.
Take into consideration all the above facts and select a good insurance for your motor vehicle.