Types of Car Insurance

Whether you are planning or preparing to drive your new car to work daily or are planning to keep it in self-storing, purchasing carinsurance is mandatory. There are different types of carinsurance plans available and you should choose the one that best suits your needs.

Carinsurance plans can be divided in to two main categories, first-party and third-party assurance. First-party plans will cover up the damages to your car and the medical expenses of the occupants if your car meets with an accident. Third-party carinsurance pays for the damages to the other vehicle that met with an accident with your car. Depending upon the plan purchased, it might also cover the medical expenses of the occupants of that vehicle.

First-party assurance has a range of sub-categories, and we will talk about some of them in brief here.

Collision Coverage
If your car is involved in any accident, then this coverage will pay the damages incurred towards repairing your car. You will get the carinsurance benefits irrespective of who caused the accident. This policy is good for new cars that have high value. Some lenders have made it mandatory for car buyers to purchase this type or sort of coverage. This protects the lenders from any losses that might come to mind due to any accident, no matter who is at fault.

Comprehensive Coverage
If you are planning to store your vehicle in self-storing or even in your own garage at home, then you should buy comprehensive carinsurance . This type of coverage provides damages in the event the car gets damaged due to natural disasters like earthquakes, floods, fire and so forth, or even if it is damaged by rodents and pests. It also covers the car against theft. Some wide-ranging carinsurance coverage offers or provides protection only to stored cars, but there is also fully comprehensive coverage that covers the damages to the car for any reason, as well as the medical expenses of those traveling in the car in case of any mishap.

Uninsured And Underinsured CarInsurance
This type or kind of plan will cover the medical expenses of the occupants in your car in the event that the person who has caused the accident is uninsured or underinsured. You should decide on for this plan only if you do not have adequate medical indemnity coverage.

Personal Damage Protection PIP Plan
Personal damage protection coverage will pay all medical expenses and lost wages for all the persons traveling in your car at the time of the accident. The only difference stuck between this plan and other coverage that pays medical expenses is that it also takes in any loss of income as a result of the accident, and therefore it has a high premium.

You should choose your carinsurance plan according to the value of your car and the medical assurance you have for yourself and your family. For old cars, it is most excellent to opt for third-party carinsurance , but you should have adequate medical coverage for yourself. Paying high premiums for your old car is not worth the value.

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