Basic Car Insurance
No matter whether you’re buying a new car or you’re leasing on, car insurance is simply a must have in each case. You need to make sure at all times that no matter what happens, your car is insured. When purchasing insurance you can go 2 ways. Either you get the full insurance, or you get the basic one. Since full car insurance can get pretty steep, people usually go for the basic package and most of them are not completely sure what basic insurance covers. The basic package may differ from company to company but the idea remains the same. So here are the areas of coverage you can expect to get with the basic package.
Collision insurance is simple to understand. This coverage options takes upon the insurance company all the necessary payments for possible damage sustained to your car during an accident. Be careful, this doesn’t mean that the damage sustained by the other car is covered. This option makes sure that you won’t have to take too much money from your pocket for repairs.
Next is the Liability insurance, or Third party insurance, how it is also known, is the most standard type of car insurance. This type of car insurance is a requirement enforced by law, if you want to drive the car on public roads. This insurance option helps you for the damage inflicted upon another car when the accident happened because of you. Being exactly opposite to the Collision insurance, this option does not cover the damage sustained by your car. As the name sais it, it takes away the liability so that you aren’t responsible for the price of repairs sustained by the other car.
Now let’s discuss a bit about insurance policies and what they include. If taken literally, a basic car insurance policy doesn’t exist in its true meaning. Many insurance companies give the customer the possibility to customize the insurance coverage options so that they can form a package themselves. Yet still, there are six forms of coverage that are omnipresent, no matter what insurance company you choose. Each of these coverage options can be added or removed depending on the needs of each customer.
The Bodily Injury Liability is a coverage option that takes away the responsibility for any possible injuries someone else may have sustained in an accident in which you are to blame. The Liability insurance option is a requirement in most states, but if you get the minimum just to meet the requirements you will find that they are not exactly adequate. Most insurance experts say that if you get rates of 100/300 it should be enough for Bodily Liability.
The Personal Injury Protection coverage option will save you the terrible price of not only having to pay for your medical treatment after injuries sustained in an accident that was your fault, but it covers the medical treatments for those in the car with you as well. This will also cover possible lost wages in case the victim in unable to continue working for a while, or in worst cases, funeral costs. This option is also a requirement in most states.
The Property Damage Liability will cover all the damage you make to another’s property. This is the main component of each insurance policy and is also the main representative of the “basic” package.
Collision offers coverage for damage incurred by your vehicle. If you’re driving an used car that’s worth very little, than you’d better drop this coverage, since the repairs will probably cost more than the car, rendering it useless.
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