Commonly Asked Car Insurance Questions
The terms used to describe car often confusing for many consumers. They are not sure what the different types of insurance and what type of insurance is optional and what types are required. Here are some answers to frequently asked questions about the car. What is Collision Coverage? Collision coverage pays for damage to your car if it hits or is hit by another car or other object. It pays for the damage to your car minus a deductible you pay before the insurance starts in. The larger the deductible, the more you will be responsible for if an accident happens. However, a higher deductible will lower your monthly premium. Collision coverage is not required if your car is paid, but if you still pay for your car, or if hired, your lender will require collision coverage. What is comprehensive coverage? Comprehensive coverage pays for damage to your car caused by accidents other than a collision. This can include damage if your car is stolen, damage by fire or flood or storm. Like collision insurance, there is an excess which you must first pay before the insurance will begin paying. And like collision, the higher your deductible, the lower your premium payments. Often extensive insurance is required if you already have a collision state laws vary. What is the sickness? If you have health insurance, purchasing additional medical expenses may not be necessary. But if you have an accident and your passengers no medical insurance, you may pay your own pocket. Medical insurance will pay for someone who no medical insurance and a number of areas to cover when you're hit by another car while on foot or by bike. What is Bodily Injury Liability / Damage Coverage? This type of coverage pays for injury or death to other people you are responsible. It will also pay for the legal defense in the event that another party in the accident sues you. Bodily injury insurance may pay for claims made against you for medical expenses, lost income and pain and suffering. Property damage will pay for damages caused to property of other people including their car, fence or anything else involved in an accident. The amount of coverage you choose is yours, but the coverage is mandatory in most countries. What is towing coverage? If you are not third party roadside assistance program or a roadside assistance program from your manufacturer, you might want to consider towing coverage. This insurance pays for towing your car, your car breakdown or be involved in an accident. Insurance is completely optional. What is Rental Coverage? If your car is in the shop for repairs and you have a car to drive, consider rental insurance. It will typically pay a fixed amount per day for perhaps 30 days while no car. The insurance is optional, but would be worth the cost if you need a car to work while yours is in the shop.
Tags: car insurance questions, collision coverage, insurance questions, medical coverage
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