What to Consider When Changing Your Auto Insurance Policy
What are the three different types of auto insurance?
Auto insurance is insurance specifically for automobiles, trucks, vans, motorcycles, and other road-going vehicles. Its primary function is to offer financial coverage against bodily damage or injury resulting from road accidents and against liability, which can also arise from numerous incidents inside a vehicle.
This insurance also covers medical expenses resulting from road accidents. There are different types of auto insurance such as comprehensive, collision, and uninsured motorist. The latter is the most common type of policy that insurance companies sell.
How will these three auto insurance policies benefit you?
Comprehensive auto insurance coverage is designed to repair damages incurred due to collisions with another vehicle. It is the most expensive type of policy because all the costs incurred due to damage and injuries are borne by the insured. Collisions that occur due to unsafe road conditions or distractions are subject to the optional coverages for uninsured motorist coverage.
Collision auto insurance provides coverage for repairs that your vehicle incurs in an accident. If the other driver is uninsured, you will be responsible for paying for the repairs. However, if both are covered, the collision policy premium will be lower than the comprehensive policy premium.
In most cases, an insurance company will not charge a deductible for the collision auto insurance policy. However, you will have to pay the deductible before the insurance company would pay for the expenses.
Both collision and comprehensive coverages are designed to provide financial support if there is a total loss of or damage to the vehicle resulting from an accident. Your car is most likely worth more than what you currently owe.
You may need this coverage if you get into an accident with a total loss amounting to more than you currently owe on your vehicle. It will help you replace your car. In this case, the insurance company would calculate the premium for this policy based on your car's current value.
Auto insurance companies typically want to provide you with a quote based on a formula that involves your vehicle's estimated value. It is best to have the formula ready when talking with an auto insurance agent or representative.
Roadside assistance is also available through most major insurance companies. This type of coverage can help in the event of an accident where your vehicle has trouble driving away after an accident.
This service may cover damages to your vehicle and any property damaged by the other vehicle during the accident. Again, the premium for this service will be based on the current market value of your car.
Another type of coverage provided through auto classic car insurance policies is Personal Injuries Coverage. This coverage can cover all medical costs related to injuries you receive in a wreck caused by another person's negligence or car.
This coverage may also cover the costs of your lost wages as well as your pain and suffering. Of course, there are limits to your classic car insurance coverage. They will vary depending on the policy you purchase.
Rental reimbursement insurance is a type of auto insurance that will reimburse you for the repair or replacement of your vehicle if you have it stolen. This type of coverage is similar to rental car insurance, but it will not provide your vehicle coverage.
If you purchase this insurance, the insurance company will provide you with a check containing the cash for the replacement or repair amount you need. The insurance company may deduct the cash value of this type of rental reimbursement insurance from your regular car insurance policy.
The insurance company may adjust your auto classic car insurance policy by raising your deductible. The deductible is the amount of money you will have to pay should you ever file a claim.
By increasing the deductible, you will be able to save money on your monthly premiums. However, you must be sure that you choose a higher deductible than you may have. Remember that you will pay more money by choosing a higher deductible if you need to make a claim.