A lot of time is spent on researching the best possible color, safety features and we like all the things very well. But most people know very little about car insurance and what it involves.
Here, a guide is prepared to provide overall information about car insurance and all the things that you have to know about car insurance before purchasing a car as it is must carry car insurance across the globe, especially in the United States.
What do you understand by Car Insurance?
It works on the principle “you can use it or lose it”. You have to pay a premium of car insurance on a yearly basis and it is compulsory to pay to the insurance company. However, you lose the premium amount if you are enough luck to not claim the discount for even once. The amount of premium can only be utilized if you claim for any sort of damage but if not, then the amount remains with the insurance company and no cannot use the same for any other purposes.
On the other side, there is a benefit of not claiming any damage for the first year as you can get a discount of twenty per cent and it may increase to fifty per cent if you will not claim any damage or injury for the coming five years. This is the reason, why it is highly recommended by www.americaninsurance.com to not claim minor damages to the insurance company.
What car insurance covers?
Different types of plans are provided by the insurance company as per the comfort of various ranges of customers so that they can opt accordingly. It is also important to note that you can go for the one policy that meets the need of the loss or damage you are expecting in the future as per the area where you live. So, here are some of the comprehensive car insurance plan covers. Let us have a rapid look at these and begin with natural calamity’s damage.
- Loss or damage after natural calamities: Not all these natural events are in our hands. These outside events such as lighting, earthquake, flood, typhoon, hurricane, storm, cyclone and landslide are common. People who are living in such areas having high chances of natural calamities must opt for the coverage.
- Loss or damage due to Man-made disasters: These incidents can happen anytime and anywhere and we have no clue about all these. It includes theft, riot, burglary, strike, terrorist activities and other damage caused by road, rail and water.
- Personal Accident Cover: It secures the future of the family while driving somewhere and meets with an accident. Optional accidental covers for co-passengers are also available.
Third-Party Legal Liability: It is mandated by law to provide protection against the legal damages that may lead to permanent or lifetime injury and even death of a person. Moreover, it wraps up the cost related to the surrounding property.