Car insurance comprises of several coverages that offer different types of protection to you and others. The most important thing to understand is that car insurance protects you from any financial risk that you could incur in the event that you hurt someone or damage their property with your car. It can even protect you if your car is the victim of an accident or get damaged by fire, falling objects, animals, or if it’s stolen.
Car insurance protects you in situations where you’d be responsible for paying the repair bills or medical expenses of others. It can also cover your medical expenses and those of the passengers in your car in case someone else hits your car.
The state requires all drivers to have a certain minimum amount of insurance, but ideally, you should ensure that your insurance protects your assets and provides enough coverage to protect your finances in case you ever get involved in an accident.
The main part of car insurance is liability coverage that protects others in case you cause an accident. It is divided into bodily injury liability that pays the medical bills of the people you’ve injured and property damage liability that covers the cost of property damage caused by your accident. Next is personal injury protection that covers medical expenses for you and your passengers after an accident. Also critical is uninsured/underinsured motorist cover that covers costs in case you are in an accident caused by someone who either does not have any insurance or their insurance isn’t enough to cover your costs. Another popular insurance is comprehensive coverage that covers the damage that happens to your car when you’re not driving it. Finally, there’s collision insurance that covers damage to your vehicle in the event of an accident irrespective of who caused the accident.
You should also know that your insurer does not cover regular repairs as a result of everyday wear and tear. The policy will also only cover people named in the policy. If someone not listed drives the car, they’ll need to have their own insurance. In case you drive for fares, you should check if your coverage provider will still cover you. You may need rideshare insurance.