When you're looking to buy auto insurance in Burlington, the different varieties of insurance available can be rather confusing. So much insurance jargon gets thrown around that it's difficult to know if you're getting the right deal or not. Learning a little bit about car insurance and the different types of coverage will allow you to make the best auto insurance decisions possible. One of the most commonly purchased auto insurance policies is comprehensive cover. Let's take a look at some of its features:
Why You Need Insurance
Third party or Liability Insurance
This is the most basic form of auto insurance policy offered by many car insurers. It means that if you are involved in an accident and it is proven to be your fault (liability) then your insurance provider will pay out a sum of money to the other person involved in the accident (third party) to cover bodily harm or property damage. The amount of cover and what will be paid out is agreed during the initial quote. Make sure you check what is included in third party cover and whether it is realistic enough for your needs.
There are a variety of car insurance coverage levels, and legal insurance requirements depend on the state you live in. Below are some of the types of car insurance coverage most commonly sold in the US:Collision coverage - covers you and your car in an accident.
- Damage sustained to your vehicle during storms or natural disasters like tornadoes, hurricanes, and earthquake
- Damage caused by fire
Medical, Personal Injury Protection and No Fault Cover
- Personal Injury Protection - protects you in case of injury to your person during an accident.
- Uninsured motorist coverage - pays out and protects you if you are involved in an accident with an uninsured driver.
This might be offered as a policy extra that protects you in case of a collision or accident involving an under-insured or uninsured driver. Your insurance company will pay out a sum of money to cover damages and will attempt to recuperate their losses from the at-fault party through other means.
Choosing the Best Comprehensive Coverage
It is common practice for the person who was at fault to pay. If they have a car insurance policy their insurance company will pay for any damage caused. If they don't have adequate insurance, who pays depends on what level of coverage you have, such as under-insured/uninsured motorist cover. How Much Should You Pay?
Consider realistically what you can afford to pay out your own pocket if you car gets damaged, before you think about tweaking the amount of your deductible. If you think you can pay a larger amount then your monthly premium will be lower.
Moreover, think about how much money you would lose through personal injury if you were involved in an accident and you no longer had access to a car to get to work. On the other hand, if you only drive short distances for social purposes, it may be worthwhile only investing in third party or liability insurance.
Why You Need Insurance
Third party or Liability Insurance
This is the most basic form of auto insurance policy offered by many car insurers. It means that if you are involved in an accident and it is proven to be your fault (liability) then your insurance provider will pay out a sum of money to the other person involved in the accident (third party) to cover bodily harm or property damage. The amount of cover and what will be paid out is agreed during the initial quote. Make sure you check what is included in third party cover and whether it is realistic enough for your needs.
There are a variety of car insurance coverage levels, and legal insurance requirements depend on the state you live in. Below are some of the types of car insurance coverage most commonly sold in the US:Collision coverage - covers you and your car in an accident.
- Damage sustained to your vehicle during storms or natural disasters like tornadoes, hurricanes, and earthquake
- Damage caused by fire
Medical, Personal Injury Protection and No Fault Cover
- Personal Injury Protection - protects you in case of injury to your person during an accident.
- Uninsured motorist coverage - pays out and protects you if you are involved in an accident with an uninsured driver.
This might be offered as a policy extra that protects you in case of a collision or accident involving an under-insured or uninsured driver. Your insurance company will pay out a sum of money to cover damages and will attempt to recuperate their losses from the at-fault party through other means.
Choosing the Best Comprehensive Coverage
It is common practice for the person who was at fault to pay. If they have a car insurance policy their insurance company will pay for any damage caused. If they don't have adequate insurance, who pays depends on what level of coverage you have, such as under-insured/uninsured motorist cover. How Much Should You Pay?
Consider realistically what you can afford to pay out your own pocket if you car gets damaged, before you think about tweaking the amount of your deductible. If you think you can pay a larger amount then your monthly premium will be lower.
Moreover, think about how much money you would lose through personal injury if you were involved in an accident and you no longer had access to a car to get to work. On the other hand, if you only drive short distances for social purposes, it may be worthwhile only investing in third party or liability insurance.
About the Author:
Learn more about Auto Insurance Burlington. Stop by Justin McKenzie's site where you can find out all about Auto Insurance and what it can do for you.
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