What Does It Cover And Not Cover Car Insurance
Introduction
When you buy a new car, it's natural to want to protect it from damage. But what if that damage is caused by another driver on the road? Most cars--especially those that are newer than five years old--come with limited coverage for uninsured drivers and hit-and-run accidents. If you're looking for affordable car insurance, here are some things to consider when choosing a policy:
What does it cover?
Auto insurance coverage is the amount of money you'll be reimbursed in the case of an accident.
Collision coverage pays for damage to your vehicle caused by an accident. This includes things like:
Your car being dented, scratched or damaged in any way
Glass breakage from a collision with another vehicle
Medical Payments Liability covers you for injuries sustained in an accident, regardless of fault and up to $50 per person. If someone gets hurt on your property, they may seek compensation from you under this clause.
What does it not cover?
Theft, vandalism, and fire are not covered by vehicle insurance. The best way to prevent these events from happening is by having adequate car insurance coverage.
If your car is stolen while it's parked in a public place, or if someone damages or vandalizes your vehicle while you're driving it (as opposed to parking), then this is considered to be an “accident” and there may be some liability issues for which you should consider obtaining insurance coverage from an auto club or other company that provides third-party liability protection on behalf of its members.
How much does it cost?
How much does car insurance cost?
Car insurance varies by company and by the type of coverage you choose. The price for your premium will vary depending on several factors, including:
Your age (younger drivers are more likely to have accidents)
Where you live (insurance prices in some states are higher than others)
Whether or not you carry comprehensive and collision coverage
How to save money on car insurance
Get a quote from multiple insurers.
Ask your insurer if you can pay in instalments.
Insure your car for the right amount (for example, get an annual policy that covers comprehensive and third-party fire and theft cover).
Make sure your car is roadworthy by checking it's MOT certificate, brakes, steering and suspension components (including shock absorbers) etc.
Check if you can get a discount for installing safety features such as seatbelts or airbags - but remember these may not be available on all vehicles!
Knowing what a car insurance policy covers will help you find the right one.
Knowing what a car insurance policy covers will help you find the right one.
Compare policies by looking at the cover they offer.
Compare policies by looking at their prices, including hidden costs such as excesses and cancellations.
Conclusion
While it’s important to understand what your car insurance policy covers, it’s equally important to know what it does not cover. If you find yourself in an accident or need emergency medical care for a loved one, you want to know about these additional costs beforehand so that you can budget accordingly.
