I’ll tell you a story! Recently I advised one of my close friends to buy car insurance. But he didn’t know how does car insurance work. So, instead of researching it or asking me, he didn’t bother buying any insurance and went on a road trip.
But as luck would have it, his car got into an accident. Don’t worry, nothing happened to him, but the car he collided with was done for!
Moreover, the driver and the passengers were badly hurt. As the accident was my friend’s fault, he had to pay for the damage and hospital bills of the victims.
How Does Car Insurance Work? Time to Know
What did you learn from the story? Yes, learn about insurance and get them. So, it’s time you know about car insurance in detail.
To begin with, there are six types of mandatory car insurance that you must know about. Let’s go!
1. Liability Coverage for Bodily and Property Damage
Liability coverage comes in handy when a third party gets injured by your driving car. It’s an extremely important coverage, and you require it in 49 out of 50 states in the USA.
Let’s take my friend from the story above. When he caused an accident, the other party was injured along with their car. Hence, he sued my friend, and my friend had to pay for their car damage and hospital bills.
If my friend had bought insurance, this money would’ve gone from Liability Coverage. And my friend would’ve walked out without any monetary loss.
2. PIP or Personal Injury Protection Coverage And Medical Payments
Personal Injury Protection is covered in only a few states, whereas Medical Payment Coverage is covered in most states. However, both cover injuries that happened to you post a car crash.
For example, if my friend from the story had suffered any harm due to the accident, he would’ve received PIP. Medical Payments and PIP pay the injured regardless of fault.
Therefore, the insurance officers wouldn’t have cared who caused the accident. And they would’ve covered my friend’s medical bills despite his fault.
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3. Coverage for Unwanted Collision
Alright, so Collision Coverage is for serious accidents. Therefore, you can claim it only if your car collides with another car, object, fence, or tree.
Let’s take my friend’s example again. He would’ve received Collision coverage if he had the insurance, apart from liability coverage. That way, he, too, would have received money for his damage and would’ve saved all his money.
So, if your car gets turned over or seriously damaged while driving, you know the type of coverage you can claim.
4. Insurance for Uninsured Or Underinsured Motorist Bodily Injury and Property Damage
An uninsured bodily injury and property damage coverage pay you when an uninsured driver runs over you and your car. It’s an extremely important insurance and is thus covered in most US states.
For example, the couple my friend hit would also receive money from their insurance company, and my friend if they have UMPD insurance. However, that all depends on the state the accident occurred.
The accident my friend occurred happened in a state where they don’t have such benefits. Thus, my friend couldn’t walk away free and had to pay the lump sum.
5. Coverage for Damage Against Your Control (Comprehensive)
As the name suggests, Comprehensive Coverage gets you covered for damage that’s beyond your control.
For example, if someone steals, vandalizes or sets your car on fire, you can’t control it. Therefore, at such times you can claim Comprehensive coverage from your insurance. Company. However, there’s a deductible involved with this type of coverage.
Hence, you’ve to pay the amount that you’d need to repair or replace your car. And once you have a new or repaired car, your insurance officer will pay you a visit. And if he finds your situation genuine, they reimburse the money.
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6. Medical Payment for Family Members
Medical Payments Coverage is for your family members and co-passengers injured in a car accident. Its Coverage helps you pay for X-rays, doctor visits, and surgeries.
For example, if your mother gets injured while with you in your car, your coverage will also cover for her. However, kindly remember that Medical Payments coverage only covers your family members.
Therefore, if your friends try to claim it, they’ll not be provided with this coverage.
Wrapping it Up
Various Car insurance companies will help you to learn how does car insurance work and also assist you in buying them. So, contact your preferred insurance company and get a strong insurance package. Believe me; you won’t regret it. Best of Luck! 🙂
FAQs
What would my Car Insurance Not Cover?
Your car insurance won’t cover those who aren’t listed on your insurance policy. Hence, if anyone drives your car regularly, it’s better to get them listed. And if the driver isn’t your family member, you must buy rideshare insurance for them. This way, your car will be 100% insured.
Can You Tell Me About Car Insurance Premiums?
Your car insurance premium is the money you pay to get the coverage. You can purchase two types of insurance premiums. One kind of premium lets you pay the dues through monthly installments or in full. So, you’ve to decide whether to pay your premium in monthly installments or in full.
Will My Car Insurance Cover Maintainance?
Your car insurance doesn’t cover your maintenance. Not just that, auto insurance also doesn’t pay for your mechanical failure or wear and tear. However, you can claim roadside assistance coverage if your car is towed or for mechanic charges.
How Can I Get Car Insurance?
You can get car insurance by contacting your nearest insurance agent or your preferred insurance company. And if you need to learn about a good insurance company, you can search Google for one. I’m sure a Google search will help you find a good car insurance company or an agent.
Best Wishes.
