Auto Insurance And It's Coverage

By Justin McKenzie

Auto insurance is provided by car insurance companies who offer different levels of protection to the driver of the vehicle, passengers, third parties and the vehicle in the event of an accident. It's down to you, however, to choose and purchase the right auto insurance policy for your needs.

Learning a little bit about car insurance and the different types of coverage will allow you to make the best auto insurance decisions possible. One of the most commonly purchased auto insurance policies is comprehensive cover.

Let's take a look at some of its features:

- Third party or Liability Insurance

Comprehensive cover essentially covers you for any damage caused by other means, without a collision. For example, what if the neighbourhood kids hit a baseball through your windshield? What happens if there's a storm and a tree falls on your car? Liability car insurance coverage won't protect you or reimburse you for these kinds of accidents, but comprehensive coverage does. If you worry about external factors damaging your car, then comprehensive coverage may be the type of car insurance you need.

Collision coverage - covers you and your car in an accident.

- Full Coverage

There is usually quite an extensive list of scenarios and situations that are covered under comprehensive auto insurance policies:

- Damage sustained to your vehicle during storms or natural disasters like tornadoes, hurricanes, and earthquakes

Your insurer will pay to have your vehicle repaired or pay the cash value of the vehicle if it cannot be repaired. Comprehensive cover provides protection for your car in the event of damage by fire, theft, weather or vandalism, too.

- Damage caused by another person e.g. vandalism and theft

Under-insured motorist coverage - helps with expenses if you are involved in an accident with someone who doesn't have a sufficient level of insurance to cover the damage caused to your vehicle.

- Under-insured /Uninsured Motorist Coverage

- Damage sustained to your car via falling objects e.g. tree limbs, roof tiles.

Choosing the Best Comprehensive Coverage

These are useful added extras that are usually included with comprehensive insurance policies. Many insurers will provide towing and labor services built in to your policy, as well as paying the cost of hiring a rental car during the period that your car is off the road in the event of an accident.

When considering your deductible, remember that the top amount comprehensive car insurance coverage pays out in the event of a serious accident or damage is the total, current cash value of your car. Therefore, if your vehicle's cash value is a similar amount to your insurance deductible (your car may be old or worn out), comprehensive coverage might not be the best auto insurance policy for you.

Your auto insurance policy protects you in case of an accident, but it is entirely up to you which level of coverage you want to purchase above and beyond what is legally required in your state. Consider how often you use your car and what you use it for. Don't choose the cheapest and most basic option to cut costs; think about what would happen and how your life would change if you were involved in a serious accident and you didn't have the best auto insurance policy possible for you.

About the Author:

Learn more about Auto Insurance Burlington. Stop by Justin McKenzie's site where you can find out all about Auto Insurance and what it can do for you.