Do you own a car? Do you want to make sure that you protect it if ever accidents occur? If so, you’ll want to apply for car insurance policies. There are many different types of premiums, but it’s also essential to know the various coverages you’ll get. It’s not easy to look for cheap car insurance online, so it’s better to understand the coverages being offered to know what kind of policy to apply for that’s worth it. Of course, the goal is to save and be insured simultaneously. Read on below to know the three most common coverages available today.
Collision Damage or Own Damage
One of the most common types of insurance coverage is the Collision Damage or Own Damage cover. Here, the insurance company will reimburse the cost of repairs for your vehicle. They will take into account the age of your policy and its Insured Declared Value are taken into account to arrive at the premium. The IDV is based on the market value of your car. The maximum amount payable under the Collision Damage cover is given by the IDV less accumulated depreciation. If the vehicle is purchased using a loan, you should hold a collision cover.
Comprehensive Car Insurance
The highest level of coverage or insurance policy is the Comprehensive Car Insurance. It includes liabilities to third parties, damage to own vehicles, personal accident cover, and non-collision damage. You can also enhance this type of insurance with add-ons. Take note that this will be very expensive, but you’re financially protected if ever an accident happens in the future since the car insurance company will reimburse you. All you need to do is file a claim, and they’re taking care of it right away. It’s one way to guarantee that you can still use your car.
Third-Party Liability Only Cover
Another type of car insurance is the Third-Party Liability Only cover. Under this insurance premium, the insurance company will pay for the cost of repairs or replacement of the vehicles of the third parties, cost of hospitalization of the third parties, and liabilities that resulted in the death of the third parties. It’s one of the most essential coverage if you’re driving all the time as accidents can happen. The sum that the third party will receive will protect you from paying out of your pocket. Naturally, this type of insurance is pretty expensive too.
Understanding the common types of insurance coverage will help you choose your premium. If you know the different add-ons to the policy, you could further enhance it. However, it comes at a price, but you can still find the cheapest one that won’t break the bank for your monthly payments. Use a comparison website to start, such as Money Expert.