Auto Insurance

Understanding your car Insurance coverage

Being under an insurance cover means that you are under some sort of financial protection with an insurance company in case of an accident.

Insurance covers range from life, to mortgage/house, to education, freight among many other policy coverages. Car insurance is one type of insurance cover that protects you against financial loss in case of an accident or theft.

How this works is that in exchange for the premium you pay to an insurance company, the insurance company agrees to pay your losses as outlined in your policy agreement. But what does auto insurance cover?

Property
Property coverage insures your car against damages caused to your car or against theft
Liability
This covers your legal responsibility to others for bodily injuries or property damage.
Medical
This provides covers the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses in case of death.

Usually, car insurance coverage are priced individually to let you customize the coverage amount to exactly fit you needs and budget.

Car insurance policies are generally issued for six months or one year timeframes which are renewable upon expiry.

How important is Car insurance?
While different countries require different insurance coverage for any car owner, most countries require car owners to pick up the following policies:

Property damage liability
This policy reimburses others for damages that your car caused to other cars or property like buildings. These damages are payable when either you or any other person who was using your car with your consent cause the accident.

Bodily injury liability
This compensates costs associated with injuries or death that was caused by your car during an accident.

Personal injury protection
It covers medical expenses for injuries to you or your passengers.
You may notice that most auto insurance covers do cover for damages done by your car. There are a couple of optional policies that cover your own car against damages:

Comprehensive
This insurance policy covers your car against theft and damage caused by an incident other than a collision such as fire, flood, vandalism, falling trees among other hazards.

Collision
This compensated you for the damages to your car that occur as a result of collision with other cars or objects like trees-when you are at fault.

Glass coverage
Provides coverage for damage done on your windscreen.

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