Types of Car Insurance Policies and the Benefits

July 10, 2017

Types of Car Insurance Policies and the Benefits

Types of Car Insurance Policies and the Benefits - Car insurance is one of the most common type of insurance policies that we are all familiar with. Just like any other type of insurance policies, automobile policy coverage can very well be an essential part of your financial strategies. Not only does it help to ensure a secure financial future for your family members should anything happen to you in the case of car accident, it also helps cover unexpected expenses such as repair or replacement should the accident result in damages. Here in this article, we will talk about the types of automobile insurance policy and learn whether or not there is another alternative that covers all aspect in life.
Types of Car Insurance Policies and the Benefits
Types of Car Insurance Policies and the Benefits

Two of the most common types of car insurance policies available on the marketplace

There is no denying that Auto insurance is as necessary as it is important, however, not a lot of car owners and drivers are aware of the fact that there are quite a number of car insurance policies on the insurance marketplace. These policies provide coverage to a number of different aspects in case of accident. The following is two types of the most common automobile insurance policy coverage available on the market and each of the uses and benefits:

1. Liability insurance

This type of automobile insurance policy is what majority of people go after when they look for coverage for their vehicle. Not only does it protect an individual from the possible risk that they may be held legally liable for something such as negligence on the road or injury as a result of car accident or collision, but also both legal payouts and costs if said individual is found liable in the court of law. However it is worth noting that any type of intentional damage as well as other type of contractual liabilities are not covered in this type of policy.

2. Comprehensive insurance

As opposed to the aforementioned type of car insurance above, this policy does not cover any damage to the vehicle that is a result of collision – which is why the Comprehensive policy is considered the best addition as it covers what the other does not.  Not only damages from collision, this type of car insurance also does not  medical expenses for both the insured and the other party should anything happen.

Do we have to own car insurance when we are already covered with another type of insurance?

So what does this type of policy cover? Comprehensive policy helps cover damage to your car that is the result of the following issues: theft, fire, natural disasters such as hail and flood, vandalism, civil disturbance, animals, and many more.

While having both of liability and comprehensive policies will serve you well, many new car owners wonder if they can opt out of purchasing both of those policies simply because they already have a set of insurance policies such as the Life Insurance. It only makes sense because with this type of insurance, you're already covered for virtually every single situation. However, skipping purchasing automobile insurance policies for this reason may not be wise as this type of coverage does not cover damages – only in the case of death or injury.
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