Vehicle insurance is coverage for personal vehicles, usually automobiles, trucks, and other automobiles. Its main function is to give financial protection against personal injury or physical damage resulting from vehicle accidents and from liability which can also arise out of vehicle-related activities. In most states, vehicle insurance must be purchased by the owner, usually after purchase of the vehicle. However, there are some exceptions where some vehicles may need to be insured immediately.
There are two types of vehicle insurance: collision and comprehensive coverage. Comprehensive coverage pays for damages not only inflicted on the vehicle itself, but also on anything else involved in the accident, inclusive of third-party liabilities. Collision coverage, on the other hand, pays for damages inflicted on the vehicle itself and for the medical and property damage inflicted on the policyholders and/or passengers in the vehicle, inclusive of damages to the insured's own vehicles and those of other policyholders. There are many variables affecting the amount of the premiums you'll pay for both types of coverage. Read on to learn more about them.
Comprehensive coverage has more advantages than drawbacks. For one, this type of insurance provides you with extra protection in case of an accident. It's even better if your auto has comprehensive and collision coverage, as it would make you eligible for receiving auto insurance discounts, such as for being a safe driver. Additionally, when the auto is used for business purposes, the policyholder's personal injury coverage will also be offered under the comprehensive coverage.
There are three basic types of vehicle insurance: bodily injury, property damage, and liability coverage. Bodily injury insurance is meant to cover medical expenses and property damage incurred by the policyholder or one of his or her passengers in the event of an auto accident. Property damage insurance, on the other hand, is meant to cover damage to the insured's vehicle and any other property owned by the insurer. Liability coverage, meanwhile, is meant to pay the cost of legal costs incurred due to automobile accidents. These three basic types of coverage are the most common, but there are a few variations among them.
One way to get around the problem of not having enough liability insurance coverage is to purchase a combined single limit or comprehensive coverage. A combined single limit will offer the same benefits as the other two types of coverage, but the premium you'd have to pay for it is lower than for either property damage or bodily injury alone. When you buy a combined single limit, you're getting all three protection at the same price. This is ideal if the car you're driving is used for business, as the lower premium that you'd have to pay for the comprehensive and bodily injury insurance would help you save money in other areas. For more awesome info about vehicle insurance, click here!
Automotive insurance is a legal requirement in some states, so it's important to understand the rules that govern how much coverage you can have, as well as how you can reduce your premium payments. You might also want to consider the different options of insurance before you buy. In Michigan, for example, drivers can choose between personal injury protection, property damage and bodily injury protection. If you don't have enough insurance, you might be barred from certain classes of driving in Michigan.
Look here for added details: https://en.wikipedia.org/wiki/Vehicle_insurance
