- Sample Headings
What is Car Insurance?
Car insurance is a mandatory insurance policy that provides financial protection in case of accidents, theft, or damage involving your vehicle. It typically covers costs related to repairs, medical expenses, and liability for damage or injury caused to others. The specifics of coverage can vary based on the type of policy and the insurance provider.
Basic Coverages
Basic car insurance coverage typically includes:
Liability Coverage: This covers damages or injuries you cause to others in an accident. It includes
- Bodily Injury Liability: Pays for medical expenses and other costs for injured people.
- Property Damage Liability: Covers repair or replacement of property damaged by your
vehicle.
Collision Coverage: Pays for damage to your own vehicle resulting from a collision, regardless of who is at fault.
Comprehensive Coverage: Covers damage to your vehicle from non-collision events such as theft, vandalism, natural disasters, and animal strikes.
Personal Injury Protection (PIP) or Medical Payments Coverage: Covers medical expenses for you and your passengers regardless of who is at fault.
Uninsured/Underinsured Motorist Coverage: Provides protection if you’re in an accident with a driver who doesn’t have sufficient insurance or is uninsured.
These coverages can vary by location and provider, and you may choose additional options based on your needs.
Add on coverages
Add-on coverages for motor insurance enhance the basic policy and may include:
Roadside Assistance: Provides services like towing, battery jump-starts, flat tire changes, and lockout assistance when your vehicle breaks down.
Rental Car Coverage: Covers the cost of renting a vehicle while your car is being repaired due to a covered claim.
Gap Insurance: Covers the difference between the amount you owe on your car loan or lease and the actual cash value of your vehicle if it’s totaled.
Windshield/Glass Coverage: Covers the repair or replacement of damaged windows or windshields.
Key Replacement: Covers the cost of replacing lost or stolen keys and possibly the associated lock or ignition system.
Custom Parts and Equipment Coverage: Provides protection for aftermarket modifications or custom parts added to your vehicle.
No Claim Bonus Protection: Preserves your no-claim bonus or discount in case of a claim, preventing an increase in premiums.
Personal Belongings Coverage: Covers loss or damage to personal items inside the vehicle, such as electronics or luggage.
These add-ons can vary by insurer and may come with additional costs.