Does Insurance Buy You a New Car
Car insurance is one of those things that we take for granted. We just assume that, if something happens to our car, the insurance company will cover the cost of a new one. But is that really always the case? In this article, we’re going to explore the realities of car insurance and see if it actually buys you a new car. We’ll look at the different types of coverage and how much they actually cost. And we’ll even take a look at how to get free car insurance quotes so you can find out for yourself. ###
What is Car Insurance?
When you buy car insurance, what you’re really buying is protection from financial loss in the event of a car accident. The amount of coverage you need will vary depending on your driving history and the make and model of your car.
The most basic type of coverage provides limited protection in the event of an accident, including property damage, medical expenses, and loss of income. For example, GEICO offers $10,000 per person/$20,000 per occurrence for general liability insurance. This means that if you are involved in an accident and are deemed at-fault, GEICO will cover your legal costs and damages up to $100,000 per person/$300,000 per occurrence.
If you have been involved in more than one Accident within the last 3 years GEICO may require higher limits ie $250k per person/$500k per occurrence. Many other companies also offer increased limits after multiple accidents however these limits vary greatly so it is important to consult with a carrier that specializes in auto insurance.
Additional types of coverage can be purchased such as “collision” or ” comprehensive” which both provide additional protection for your vehicle in the event of an accident. Collision provides coverage for your vehicle’s actual value while Comprehensive covers any damage not covered by collision such as theft or vandalism.
Different companies offer different levels or types of coverage so it is always important to read the fine print when shopping around for car insurance. Some basic questions
The Different Types of Car Insurance
When you buy a car, you’re also buying car insurance. But what kind of car insurance?
There are three main types of car insurance: property, liability, and collision.
Property insurance covers the value of your car. If it’s stolen or damaged in an accident, your insurer will pay for the cost of replacing your vehicle. Liability insurance protects you from being held financially responsible for somebody else’s accident. Collision coverage pays for damage to other vehicles as a result of a car crash.
Your policy will also have specific coverages for things like theft and vandalism. Make sure to read the fine print to see exactly what is included in your policy.
What to do if you are in an accident
If you are in an accident, the best thing to do is to stay calm and assess the situation. If you are driving, assess the damage to your car and decide if you need to stop or keep driving. If you are a passenger, stay out of the way and refrain from assisting anyone until authorities arrive. Remember that if you are at fault for the accident, your insurance company may not cover any damages to your car.
Conclusion
No one knows for sure, but many people believe that insurance companies use claims data to help them determine which drivers are likely to file a claim and thus should be offered higher premiums. If you’re worried about this and would like to take some steps to mitigate your risk, you may want to consider adding comprehensive car insurance coverage. Not only will this reduce the chances that you’ll have to pay out on a claim, it will also give you peace of mind in knowing that you’re fully protected in the event of an accident.
