Car Insurance Coverage for the Average Joe

Car insurance is a necessary thing to have if one owns a vehicle or even
rents one. The purpose of having one for each vehicle is to cover the
cost, or most of it, when the automobile meets an accident. The kind of
coverage is dependent on what the owner of the means of transportation
has chosen prior to registering it. There are cheap policies and there
are also policies that cover almost every aspect of an accident or
damage to the vehicle and to the people who are involved in the accident
or damage.

Liability
This type of car insurance covers most, if not all, of the cost of the
damage that the owner of the car may have incurred with another vehicle
as well as with the other vehicle’s drivers and medical bills of the
other people who are involved in the accident. This means that the owner
of the insured automobile is not actually covered in the policy and may
have to pay for his own vehicle’s damage as well as his own medical
bills. Included in it are the cost of defense and other court or lawyer
fees.

This kind of coverage is actually one of the requirements of each state
for their registered car owners. Each state may have specific
requirements not included in the basic liability packages. If the
vehicle owner wants his own automobile to be included in the policy, he
should get a collision policy to go with the basic coverage. This type
of car insurance covers the damages to the owner’s vehicle depending on
the collision with another automobile or object.

Comprehensive
This type actually covers most of the damage to the vehicle outside of
the damage from an accident. The damage includes that from fires,
floods, theft, hail and other occurrences not covered in the collision
and liability package. Medical coverage is not included in this type of
policy. It basically covers the medical expenses of any persons included
in the vehicular accident. There are also some policies that target
motorists who are uninsured or underinsured. These two means that of the
person who collided with the owner of the vehicle is not insured or has
insufficient car insurance, then the company can step in and cover the
cost of the vehicle’s owners costs with the issuance of a current
policy.

Rentals
Vehicles that are rented out also have a different kind of car
insurance. This one vehicle can actually have a liability insurance
which comes as a requirement for the vehicle itself but it can also have
a separate safeguard which the rental company itself asks the person
renting to participate in. The reason behind this is that the driver of
the automobile changes almost every day and there has to be a separate
policy that clarifies the status of the automobile.

These are the likely policies that one may encounter when registering a
vehicle for the first time or renewing its registration. The choice of
policy is up to the owner and dependent on the laws of the state.