Road accidents are without a doubt, one of the most common occurrences in the United States.
There are literally hundreds of accidents that take place every day. While some of insurance is compulsory, it might be time you revise your insurance policy and choose a solid plan that you could actually benefit from rather than use an insurance plan for legal purposes. There are numerous types of auto insurance plans available and depending on the type of vehicle you drive, the way you drive and your budget, you should be able to find the ideal insurance plan.
Based on statistics in recent years, the incidence of road accidents taking place has been on the rise. There have been over 5 million vehicles damaged with over 2 million people injured as a result of accidents on the road thus it is virtually mandatory for every individual to consider insurance seriously and have adequate coverage for your vehicle as well as yourself.
There are numerous types of insurance that can be chosen from. Each of these insurances serves a specific purpose and offer coverage for different instances. Of course, having all available forms of cover in your plan would be ideal but it may not be a viable option.
Liability insurance is the amount of cover which will be provided for the damage and injury caused to the victim in an accident. This is of course if you are at fault. You will be required to have a certain amount of liability insurance by law but you are free to increase this amount if you wish to do so. Paying a higher premium means the less you would have to worry if you are involved in a car accident in which you are at fault. Of course, if you are generally a careful, responsible driver, choosing the minimum amount of cover for liability is a sensible option. Costs associated with an accident where compensation needs to be paid if you are responsible can run up to a fairly high cost, thus having enough liability insurance is essential.
Your insurance premium will also be affected depending on your driving history. If you have been given tickets in the past for speeding, this may set off a red flag and the insurance company will be obliged to charge extra.
Your car is probably one of the largest investments you will make. While costs in recent times can be relatively low, the amount you depend on your car is immense and thus having enough cover for it to be repaired in due time if an accident occurs or even be provided with a replacement vehicle until the car has been repaired is essential. Collision insurance takes care of any damages to the vehicle when an accident occurs. This type of insurance is not required by law but it is highly recommended to have collision insurance as costs associated with accidents can add up.
Comprehensive Auto Insurance
Comprehensive auto insurance as the name suggests provides cover for virtually every possibility of damage such as theft, intentional damage by another party or wear and tear. Due to the numerous possibilities of a car being damaged, premiums are driven up as the probability of an accident occurring is rather high. However, this type of insurance is commonly chosen as it safeguards the car from any form of damage.
Full Coverage Auto Insurance
Full Coverage Auto Insurance combines all the aforementioned forms of coverage. It provides liability insurance; it covers damage to the vehicle due to collision as well as other damages caused by miscellaneous factors. This plan also covers medical bills if you are injured in the accident. You can alternatively use your health insurance plan as well if you wish to. Needless to say, the premiums with full coverage are higher than the aforementioned plans.
Personal Injury Protection (PIP)
As the name suggests, it provides insurance for any injury caused to the passengers or the driver in the accident. It also may cover expenses for the funeral expenses in the unfortunate event that any of the individuals in the vehicle don’t make it. if you choose a full coverage plan, having a PIP would be unnecessary. If you do not choose full coverage however, having PIP is mandatory in most states.
Now that you have an idea about the numerous types of auto insurance, the next step would be to find a suitable insurance company. With the internet, this process is now fairly simple. All you have to do is use an insurance comparison website and choose the most appropriate plan. Be sure to perform background checks on potential companies to ensure that they are the real deal.