Car insurance is mandatory these days and something that you cannot simply wish away. The manner in which auto insurance prices have been skyrocketing, it has become very difficult for car owners to manage their insurance policies. Most people simply sign the document provided by their insurance agents not knowing what different terms contained in this document mean. The only thing that most car owners are interested in is low car insurance rates.
Car insurance is a financial product that is purchased in the form of an agreement signed between you as the car owner and the insurance company. It is a protection for your car in the same way that life insurance is for your life or home insurance is for the safety of your abode. With the safety and security of your valuable car depending upon this financial product, it pays to understand the various terms and features of the auto insurance.
Liability coverage
This is a feature in a car insurance policy that provides cover against claims made by others for the damage to their cars and bodily injuries that may be caused by an accident involving your car. Without this coverage, you will be forced to pay for the damages caused by your car out of your own wallet.
Collision coverage
This is the feature that provides cover for the damages to your own car that take place in an accident. Collision cover makes available the cost of the repairs of your minus the deductibles. This takes us to deductibles that are an important factor deciding the cost of insurance. This is the amount of money that you are ready to pay out of your own pocket agreeing not to make a claim if the repairs are below this amount. Talk to your car insurance provider how you can lower the car insurance rates by keeping these deductibles high.
Comprehensive coverage
It is this feature that provides protection to your valuable car against not only theft but also damage caused by fire, hailstorm, and other natural elements.
Medical coverage
This is a provision in car insurances that provides for the medical expenses incurred by the victim involved in a car accident. If you have this feature included in your car insurance policy, you are provided medical expenses by the insurance company for bodily injuries sustained in the car accident.
Rental reimbursement
What do you do when your car has gone to a garage for repairs? This feature, when included in your car insurance policy entitles you to get daily allowance to rent a car till the time your car becomes fit again.
In addition to these important features, there are many important factors that you need to keep in mind to keep the premiums of your car insurance low and manageable.