Auto insurance is
an insurance/compensation contract between you and the insurance company
against any damage of your vehicle due to any mishaps. In plain English – this is a contract that
protects your car from any unfortunate event, such as – accident, fire, floor
or anything similar. Those unfortunate events are covered by the insurance.
Insurance is a great tool to protect you from sudden expenses.
Auto insurance is
a must, without auto insurance you can’t drive your car. It is a government
rule and every car owner must insure his/her vehicle with specific insurance
coverage. There are numbers of automotive insurance available. You must choose
your automotive insurance carefully. Here is a brief list of popular automotive
insurances –
Comprehensive
Insurance: comprehensive
insurance is the most popular and hopefully the best insurance for any car
owner. It covers all damages. Different companies include different damage
related expenses, so, it is recommended that, you must check the policy
document before buying it. Actually, this kind of insurance covers all mishaps
that are included in the policy document. However, it is bit expensive and
comes with the hefty insurance premium amount but it ensures more risk free
insurance solution than others and they are really effective in comparison with
its price.
Collision
Coverage: the name
suggests its nature. It is much more effective when the car is badly collides
with another car and smashed completely. Usually, completely smashed car costs
thousands of bucks to renovate and this insurance helps you slash down the
renovation cost.
Property Damage
Liability: sometimes it
comes with comprehensive insurance. Sometimes it needs to buy separately.
Whenever your car damage any other person’s property due to accident, this
insurance will help you to compensate the damage.
Body Injury
Liability And Medical Payment Insurance: body injury insurance is the oldest and most common
insurance in its genre. This insurance
involves all legal cost and claims by third parties due to personal injury can
be compensated.
On the other hand,
medical payment insurance covers the expenses of medical treatment of the
injured person, even sometimes it cover other parties involves in the accident.
Both the
insurances can be purchased separately. Some companies also club together both
the insurance and sell it. Additionally, it is also available in comprehensive
insurance too!
How to Choose
the Right Auto Insurance Company?
Well, there are
several key factors involved while you’re going to choose an automotive
insurance company. Here is a quick checklist for you –
1.
License: before doing anything, make sure that, the
company is registered properly and they have the government or an insurance
regulatory authority license to sell the auto insurance. To verify the license
and the legality of the company, consult with your state’s insurance agency or
national association of insurance commissioner’s office.
2.
Price/Monthly
or Yearly Premium: price or premium is one of the key factors
that you must consider. Getting the maximum insurance coverage with minimum
insurance premium is the perfect deal. The best way to find the perfect deal is
– ask for auto insurance quotes from different companies and compare them.
3.
Service
Time: it is very common
that, some reputed insurance companies take a long time to process each claim
and involves lots of documentation, inquiry, verification and many other legal
processes – that simply kills your time. So, find a company that has faster
service time to process the claims. It is a better idea that, you can directly
ask them for their service time.
Finally, check the
reputation from previous customers or through the Internet or consumer forums
before buying your auto insurance. This will help you to get the complete value
of your hard earned money.
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