When choosing the right car insurance policy, it might take a while when taken into account how many different types of policies are there.
While some of them are absolutely necessary if you want to be safe while driving, others are designed to get money out of naive customers and are the last thing you need unless you get the urge to send your money down the drain for no reason.
For example, if you already have personal health insurance, it’s excessive to get personal injury protection, as it’s a pure waste of money.
We’ve covered some of the most common types of car insurance along with the kind of damage they are covering.
This is the most basic type of car insurance which covers any potential damage caused in the car crash or other car accidents if the police decide it was your fault.
Liability insurance covers a certain amount of money to repair cars or damaged property or cover medical expenses if there were any people harmed in the accident.
The more you invest in your liability car insurance, the more does it cover, so you should definitely think of getting one of the upgraded versions of this policy because the last thing you need is paying expensive medical bills or car repairs out of your own pocket.
One of the most popular kinds of car insurance that pays for all the car repairs if you happen to have a car accident. In the case of your car getting damaged beyond repair, the insurance company pays out the estimated value of the car.
The biggest disadvantage of this type of insurance is that it doesn’t pay off if you have an old car. In this case, the cost of insurance itself is too high compared to the potential amount of money you’d get if your car got damaged, so it’s better to keep an emergency fund that could cover any risks of car accidents.
If you’re car is relatively new though, it’s a good idea to get this type of insurance, just so you can feel safer when driving.
This kind of car insurance is meant for people who are still in the process of paying off their car. In case of accident, it is required from the buyer to pay off the car if it gets totaled, and you don’t want to risk this kind of thing happening.
If the total amount of payments ahead of you exceeds the amount of money you’d easily gather in case of emergency, gap insurance might be the perfect choice to keep you worry free until you’ve paid off the whole car.
While liability and collision car insurance only cover car accidents, this type of insurance covers any other damage that could be done to your car.
This includes a whole variety of cases from theft to weather condition caused damage, animals and any other scenarios you could think of.