Holding The Wrong Type Of Car Insurance May Well Cost You A Small Fortune

Car insurance provides protection for the policy holder (normally the driver or owner of the vehicle) from financial loss in the event of a car accident. For this protection the plan holder pays a regular premium which depends upon several factors like the age of the driver, the car in question, the driver’s history and the driver’s location to mention a few.

There are several different types of car insurance to protect the plan holder from costs associated with damage to the car, damage to property and injury to persons involved in an automobile accident. The different forms of cover include:

Liability cover which will pay for damages to other people or to their property in the event of an auto accident and which also covers any court costs involved. In a number of states this is the bare minimum required before you may drive a car on public roads.

CollisionÂ cover which provides payment for damage caused to your car during a collision with another vehicle or object.

Comprehensive cover which pays for different forms of damage including theft, fire, vandalism and damage resulting from severe weather.

Medical cover which will pay for any medical expenses for injuries resulting from an automobile accident.

PIP (Personal Injury Protection) cover which pays for any medical expenses when an injury is sustained in an automobile accident, regardless of whose fault it is.

Uninsured and under-insured cover which pays for any damages sustained to you if the other driver in an auto accident is uninsured.

Each state has its own rules governing car insurance and some kinds of car insurance are mandatory in each state while others will be optional. Some states, for instance, only require you to carry liability insurance while other states insist upon personal injury protection insurance cover.

There are also a number of states which are known as ‘no-fault’ states in which policy holders can recover financial losses from their own insurance company, irrespective of who is deemed to be at fault in a car accident.

Make sure that you are carrying the correct type of car insurance by letting the professionals give you a free, no-obligation cheap car insurance quote today.