Wednesday 14 August 2013

Importance Of Auto Insurance

By Justin McKenzie


When you're looking to buy auto insurance in Burlington, the different varieties of insurance available can be rather confusing. So much insurance jargon gets thrown around that it's difficult to know if you're getting the right deal or not. Learning a little bit about car insurance and the different types of coverage will allow you to make the best auto insurance decisions possible. One of the most commonly purchased auto insurance policies is comprehensive cover. Let's take a look at some of its features:

What is Comprehensive Coverage? Comprehensive cover essentially covers you for any damage caused by other means, without a collision. For example, what if the neighbourhood kids hit a baseball through your windshield? What happens if there's a storm and a tree falls on your car?

Third party or Liability Insurance

Types of Car Insurance Coverage

Full Coverage

- Damage sustained to your vehicle during storms or natural disasters like tornadoes, hurricanes, and earthquake

- Damage caused by fire

- Damage caused by another person e.g. vandalism and theft

This type of insurance will cover medical expenses and personal injury costs of you and your passengers if you're involved in a collision regardless of who is at fault.

- Uninsured motorist coverage - pays out and protects you if you are involved in an accident with an uninsured driver.

This might be offered as a policy extra that protects you in case of a collision or accident involving an under-insured or uninsured driver. Your insurance company will pay out a sum of money to cover damages and will attempt to recuperate their losses from the at-fault party through other means.

Choosing the Best Comprehensive Coverage

Comprehensive coverage normally makes up a large chunk of your car insurance premium, since damage to cars is one of the most common reasons people claim on their insurance. Even though comprehensive car insurance may be more expensive due to a higher premium, you can control the cost to an extent by managing your deductible.

Consider realistically what you can afford to pay out your own pocket if you car gets damaged, before you think about tweaking the amount of your deductible. If you think you can pay a larger amount then your monthly premium will be lower.

Moreover, think about how much money you would lose through personal injury if you were involved in an accident and you no longer had access to a car to get to work. On the other hand, if you only drive short distances for social purposes, it may be worthwhile only investing in third party or liability insurance.




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