Vehicle insurance is a common way to protect people and property from damage or loss associated with the operation of a vehicle. There are many aspects to this and there are different kinds of vehicle insurance coverage. Let’s look at and review some of them.
Most vehicle insurance policies have different kinds of coverage. The most common type is called liability insurance. This type covers against financial loss as a result of an unexpected situation with the vehicle. It could be damage to the vehicle or other vehicles as a result of an accident. Or it can be injury caused by an accident. If the person who is injured needs medical assistance, the liability coverage typically pays for this cost.
In addition if the person is adversely affected by this accident and his/her ability to work and generate an income is affected, the liability coverage will usually cover financial loss associated with this situation.
Liability coverage limits can range from a low $10K to as high as $1MM or even more. As the limits increase so do the costs but for many people, they receive more peace of mind knowing that the risk to them personally is minimal due to this coverage.
Another type of vehicle insurance coverage is property damage coverage. It protects a policy holder from having to pay for damage to other vehicles or personal property as a result of an accident. This coverage can be very important as it would otherwise expose the policy holder to significant risk and financial exposure.
There is another kind of coverage which provides for protection from uninsured motorists. Although it is normally required that every driver carry a proper amount of insurance coverage, some drivers simply do not follow this requirement. So this coverage provides for assistance if an uninsured driver gets involved in an accident with you.
Other types of insurance coverage can include collision and comprehensive. Collision provides for repair or replacement of you vehicle if it gets involved in an accident. It doesn’t matter who is at fault either. The amount of coverage is subject to a deductible which can range from $100 up to $1,000 or more.
Comprehensive coverage provides money for the repair or replacement of a vehicle if it is vandalized or even stolen. It can also cover the cost of repairing or replacing a windshield. This coverage is also subject to a deductible.