THE NECESSITY OF FULL CAR INSURANCE COVERAGE

THE NEED FOR FULL PROTECTION FOR YOUR CAR

Insurance companies carry out a duty to offer coverage to the insured based on their premium or terms of agreement. First of all, we have to understand the concept “coverage”.

Insurance coverage is the amount of protection an insurance company offers based on an insurance policy. It is the manner in which an insurance company covers its policy holder in a particular area. Its extent of the coverage is to provide protection against risk or liability for an individual or entity by way of offering insurance services for example the life insurance covering area of life, auto insurance covering area of cars, vehicles and it is usually for unexpected or unforeseen occurrences.

 Having an idea about it, let’s look at the types of car insurance coverage based on our article topic:-

TYPES OF CAR INSURANCE COVERAGE

1)   LIABILITY INSURANCE:- This kind of coverage is carried out when an accident occurs. The insurance company will look into the event and determine the accident, if it was as a result of your actions. The insurance company will cover the cost of repairing the property damaged as well as medical bills that arises as a result of the accident. Most insurance companies have certain requirements for the amount of liability insurance coverage that every driver or car owner must have but it is usually a good idea to have liability insurance that is above your insurance company requirements for you to be guaranteed full protection even above your limits.

  

  2)   COMPREHENSIVE COVERAGE:- This type of coverage is very necessary because you can never tell who will be taking you to a law court for probably killing his/her dog, goat or anything or perhaps there was a storm (Weather damage) that hit your state and therefore destroyed your car. In this coverage, you are safe with it comprehensive coverage covers accident that aren’t related to a covered accident.

3)    COLLISION COVERAGE:- This kind of coverage covers accident relating to repairs of your car to its normal state. Where the cost of repair exceeds the value of your car in an accident, collision coverage will pay the value of your own car.

Please Note: if your car is old it will be advised not to carry collision coverage on the other hand if your car is new or expensive, collision coverage will help you get it back to the normal state.

4)   PERSONAL INJURY PROTECTION:- Comprehensive coverage covers incident not related to a covered accident but what the personal injury protection covers is really worth buying, adding both to get full insurance cover. The personal injury protection covers you for additional expenses that may occur as at the time of the accident like injury to passengers, or people involved in the accident, medical bills no matter who is at fault.

5)    UNINSURED/ UNDER INSURED MOTORIST PROTECTION:-In this coverage, if you are legally responsible for damages related to an accident you won’t receive any payment if they do not have a coverage or probably the insurance company will want protection would help with the expenses.

FULL CAR INSURANCE COVERAGE

There are different car insurance coverage in insurance company are willing to offer but most of these companies do not offer you a full coverage in every circumstances but deciding you want a full coverage then you will get a full coverage. Full coverage does not only covers you for your liability but damage to your car as well. We have carefully explained the types of car insurance coverage above, so having an understanding of what they are then a full insurance coverage is the combination of:

a.     Liability insurance

b.     Comprehensive insurance

c.      Collision insurance

d.     Personal injury protection (PIP)

e.      Uninsured/underinsured motorist protection

The above mentioned coverage’s are expected to cover:

1)    Your injuries and that of your passengers probably if you are hit by an uninsured motorist up to the limits of your uninsured motorist policy.

2)    Your injuries and that of your passengers when you are at fault

3)    Your car, up to its fair market value minus your deductible, you are at fault of the other driver does not have insurance or if it is destroyed by a natural disaster or stolen

4)    The damage caused by you on others up to having a full car insurance coverage doesn’t necessarily mean every aspects must be covered weather valuable or not. There are certain cases your insurance company will not like to cover in the full car insurance coverage because of the high end risk and this may include:

             

a.     When you use your insured car for racing or other speed contest

b.     Use in car-exchange programme

c.      When your car is been destroyed or confiscated by government

d.     Using your vehicle/car for business use

e.      Intentional damaging your car

f.       Nuclear contamination

g.     Tire damage

h.     Items stolen from the car

i.       Wear and tear

j.       A rental car while your own is being on repair

Please note: A liability insurance is a must for every driver in some countries/states. Liability coverage won’t repair or replace your car if your car is on loan, you have to first meet up with this loan and then the choice to buy comprehensive and collision is yours alone