Car insurance safeguards from the financial risks related to property damage and personal injuries caused by car accidents,natural disasters ,theft,vandalism etc . After an insurance company finds a vehicle completely destroyed ,when the replacement can be cheaper than repairing ,the car insurance company may bear the replacement costs of the insured car. Car insurance can be optional or even mandatory, it largely depends upon the state regulations.
The major factors that affect car insurance premiums are as follows:
The state where the car is usedAge of the car owner
Driving record of the owner
Model of the car
Place of the car's garage
The main types of car insurance coverages are as mentioned below:
- Medical payments /personal injury protection: Cover different medical expenses which do not fall under the coverage of health insurance.
- Comprehensive : Insures car against damage caused due to fire,flood,theft,vandalism etc.
- Collision: Damage,caused after accident,collision etc.
Some of the key factors associated to car insurance are as follows:
- Deductibles: A car insurance buyer needs to pay a certain amount before the insurance coverage starts.
- Cost above limitations: A car insurance buyer needs to pay a certain amount that exceed the caps on the amount of the total coverage.
- Exclusions: A car insurance may not cover certain expenses,these are called exclusions.
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