What Type of Auto Insurance is Ideal for You?

As a driver, auto insurance will protect you, other drivers, and your vehicle. It will also provide peace of mind and is a legal requirement. There are also many different types of auto insurance available.

You should choose an insurance package that speaks to your needs. You also need to understand what is covered, as you can take steps to reduce your insurance premiums.

Car on Fire

What are the Different Types of Auto Insurances?

If a driver who does not have auto insurance hits your car, then uninsured motorist coverage will cover your medical expenses and vehicle repair costs.

Underinsured motorist coverage will help protect you if the person who hit your car doesn’t have sufficient insurance on their own.

If their policy has a limit that cannot cover all of the expenses of the damage they inflicted, then your underinsured coverage will cover the remaining costs.

Liability coverage will protect you if your car causes damage to another person’s property. You will not be required to pay for the damages that you caused.

Third-party liability coverage will also protect you if you cause an accident that injures or kills another person.

If you owe more than the depreciated market value of your vehicle, and your car is stolen or destroyed, then gap coverage will help you pay off your car loan.

Collision insurance will protect you from third-party liabilities. It will also protect you if you hit a guardrail, barrier, or virtually anything else that is not an automobile.

Towing and labour insurance will usually cover oil or gas delivery, battery jump starts, towing, lockout assistance, and tire changes.

Personal injury protection insurance will cover your healthcare expenses and the medical expenses of anyone else who is injured in the event of an accident.

What Type of Auto Insurance is Ideal for My Car?

Your credit history, age, gender, and driving record will all help determine how much you will pay for your auto insurance. The car manufacturer, model, age, and provincial or state requirements will also influence how much you pay.

For instance, if you want to insure a sports car, then the cost will be higher than the amount needed to insure a sedan: This is because sports cars tend to have a higher retail price, and they are also more likely to be involved in an accident.

Also, if you are a safe driver who has never gotten into an accident, and has never received a ticket, then you can save thousands on your insurance.

Standard auto insurance is mandatory. However, many other types of insurance are optional. Choose the type of coverage that you need according to your unique needs.

What’s in a Standard Auto Insurance Policy?

If you own a vehicle, you will be required to purchase at least three different types of coverage. Third-party liability coverage is mandatory and will protect you if you cause an accident that kills or injures someone or if you damage someone’s property.

Statutory accident benefits coverage is also compulsory. You will obtain coverage for loss of income, as well as death benefits. Funeral, rehabilitation, and medical costs will also be covered.

Direct compensation property damage insurance will cover the expenses required to repair your vehicle — which is your property — after it has been involved in an accident. You will be covered regardless of whether or not you were the cause of the collision.

Common automobile insurance coverage is the norm, but there are many other types of insurance that you may want to consider, depending on the condition and make of your vehicle, as well as your driving and credit history.

How to Reduce Auto Insurance Premiums?

Try to lower your annual kilometer/mileages count.  For example, if you use your car to drive to work, then you may want to consider taking public transit now and then. You can also try carpooling to reduce how often you drive your car.

You should also speak to your provider if you own more than one vehicle, as you may be able to save money by taking advantage of a multi-car discount.

Also, if you own older vehicles and are not driven very often, you may want to drop comprehensive coverage for them to save some money.

You may also want to do some comparison shopping in the meantime. That is, shop around to try and find better car insurance rates.

You should also work hard to boost your credit rating, as doing so may allow you to obtain a discount, as you will be seen as a lower-risk client.

It also wouldn’t hurt to up your auto coverage deductibles. When your deductible is higher, your monthly premium will be lower. Of course, you will need to ensure that you can pay the higher deductible to take advantage of the savings.

Taking the First Step

Regardless of whether or not you have a cheap car or an expensive car, you should choose the best auto insurance to protect you if your vehicle is stolen or damaged in an accident.

You should also look into what your auto insurance covers before you take your car for a spin.

Your coverage should protect you if your car causes harm to someone else. It should also cover damages that your car caused to another person’s property or vehicle.

Please speak to your insurance provider to discuss your unique needs and concerns with them.

Many potential perils may cause issues for you in the future, so you need to obtain the right coverage to protect yourself in the event of theft, vandalism, Acts of God, or a collision.

Photo Credits

Image by Gerd Altmann from Pixabay

Image by Oskars Zvejs from Pixabay

See AlsoWhy is Car Insurance Expensive for Young or First-Time Buyers?

Jessica Coates
Jessica Coates is a blogger in Toronto. She graduated with honors from the University of British Columbia with a dual degree in Business Administration and Creative Writing. Jessica Coates is a community manager for small businesses across Canada. When not working, she leisurely studies economics, history, law and business solutions.

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