What Does Car Insurance Really Cover? If you are a driver or vehicle owner, you will understand that one of the many expenses that you incur when owning and operating a vehicle is car insurance. But you might not know exactly the reasons why you need to own it and what it covers especially when it comes to accidents. Here are some key factors that are necessary to understand about your car insurance and what it covers in the case of an accident.
Car insurance protects you from financial losses, of course, at a regularly paid cost of yourself. This cost to yourself is less than that of the coverage car insurance will be able to take responsibility for if you are ever to find yourself involved in some sort of accident. This regular expense is called a premium, of which you will pay for every month, and will vary on different factors such as age, experience, driving and credit history of you, the driver, as well as the vehicle itself. There are 3 types of car insurance when it comes to your vehicle:
This type of insurance covers the costs for you if your vehicle is stolen or damaged. This occurs when you are not behind the wheel, operating the vehicle, and it is instead parked somewhere. This will be straight forward, as your provider will look at the costs of the damages with a professional who will perform an audit to determine the amount you will receive. Accidents occur all the time, such as fire or environmental damages, not just when you are driving. This leaves the question what Does Car Insurance Really Cover?
This type of insurance covers the costs that you would incur if you are involved in an accident and are held responsible for the damages. This would include legal obligations you have to others in the event of an accident for their bodily damages, health costs, or property damages. These costs will vary depending on the accident itself and the injuries sustained. If it is a serious accident, and lawyers get involved, you will be looking at costs that will not only cover court fees, but also long term damages. If you are involved in an accident, personal injury law firm experts will recommend you to limit what you say as well as call both professionals and police officials. Even if no one gets hurt, if a significant amount of damage has occurred, you will likely be involved with insurance companies. Police at an accident scene will be able to create and provide you an accident report. They will also be able to provide an unbiased perspective from a neutral third party for both insurance companies to review.
This coverage takes responsibility for your own health bills, translating to hospital costs, rehabilitation fees, and can also cover lost wages in the event you are no longer able to work because of an accident. This may also cover funeral costs if you die in a collision. After an accident, you want to gather all the costs quickly. You will want to organize it and present it to your insurance provider to receive the necessary coverages.
Of course, the coverage you receive after an accident will also factor in other facets such as a deductible. Just because you are involved in an accident, does not mean that the premium you pay will cover all the costs of the incident. The deductible is the amount that you have to pay before your insurance takes effect. As an example, if you are involved in an accident and the costs for repair are $6000, with a deductible of $1000, your insurance provider would cover $5000 of the costs, with you needing to pay out of pocket the first $1000. You might be wondering the reason for a deductible if you are already paying monthly insurance fees, and that reasoning is to hold you responsible when driving your car, ensuring that you are not operating your vehicle without a sense of liability. Of course, there are options and plans to have a zero deductible cost on your insurance, but those plans would involve higher premium rates to compensate for that option.
Accidents can happen anywhere and to anyone. What Does Car Insurance Really Cover? This is why it is important to have car insurance for your vehicle. It might seem pricey at times, but it is there for you. It acts as both a financial safety net in the event you are involved in a collision, and also to hold drivers responsible for their own decisions on the road.