Every car buyer is provided with a checklist while going to purchase a vehicle. The most important aspect covered in the list is related to the auto insurance or car insurance estimate. Car insurance is considered to be the protective cover for the vehicle. An insurance officer comes up with the varieties of auto insurance policies that depend upon the vehicle type, the tenure for which you propose the coverage, and the amount of insurance value you wish to have. However, for this protection coverage, a certain amount of yearly fee is imposed, which is known as the insurance premium.
In any car accident, the cost of damage to be borne by the car insurance company is limited to the overall gross insurance amount that you have already opted for. The companies are not liable for the damages above the guaranteed value.
What are the damages insured by the Car insurance company?
In the US, generally, car insurance does not cover the entire damage cost of the vehicle. Their plans basically cover the following types of damages. This includes,
- Liability coverage – This coverage is even known as casualty insurance, which mainly covers bodily injuries and property damages to the vehicles. However, the amount of insurance varies from one jurisdiction to the other one. The insurer even enjoys the options to enhance the insurance coverage amount in order to cover the maximum possible loss from an accident.
Even by any unfortunate circumstances, if the driver hits the telephone pole with the car, the liability coverage covers the entire damage expense caused to the pole even. However, it would not cover any other damage expense relating to the disruptions of service, if any, caused claimed by the telephone company.
A bodily coverage plan makes sure to cover the insured person from all the possible injuries during accidents. At the same time, it even covers the person from all the third party damage caused. The coverage even includes the court cost and other damages which the insured is sued for.
- Full coverage – Now, the full coverage includes all the collision and comprehensive damage cost to the vehicles. The insurance company pays for the entire repair cost incurred due to the damage, or the entire cash value of the vehicle is reimbursed in cash if the vehicle does not remain in the repairable state.
Comprehensive coverage covers the entire damages, which is not generally considered in the collision damages. The damage coverage includes damage caused by theft, vandalism, or animal attack. Additionally, there are even companies that cover loss due to unusual factors that are beyond the control of humans.
Insurance companies in the US also provide for the below-mentioned coverage –
- GAP coverage
- Damaged if done by nay uninsured or the underinsured motorist (UM/UIM)
- Loss of use
- Lease/Loan payoff
- Mechanical breakdown coverage
- Emergency Road service coverage
- Custom part and equipment coverage
However, before you get in to purchase the car insurance policies, it is ideal to thing and considers certain factors. This includes considering the amount of coverage you actually want and compare the various benefits allowed by the different companies.
The insurance cost of the electric car is more when compared to the general ones. The amount varies totally based upon the insurance company. Tesla Model 3 insurance cost are even priced more as the vehicles have aluminum frames which are not easy to be repaired. However, the technology put in use works to reduce accidental counts. But the accidental cost to be borne by the insurance companies in every accident is much higher.