Discover various types of auto insurance. Read this to know which is good for you

The insurance market is full of insurers offering “n” number of auto insurance policies. Some of great, some are not so much. But definitely, not all are a good fit for you.

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So, as a consumer, you should know what kinds are available, their coverage, the conditions they come with, and if a policy can be considered a good auto insurance or a good insurance policy for bike and so on.

Knowing such things not only helps you make no mistakes, but you can also guide others.

With that in mind, let’s see various types of auto insurance and how they work.

Comprehensive Coverage:

This is the most common type of insurance coverage. This is like a full-package deal for your car. It covers theft, accidents, and natural disasters, giving your vehicle solid protection in various unexpected situations.

• Purpose: Complete protection for your car against various risks.
• Fit for new or high-value cars.

Third-Party Liability Insurance:

A mandatory insurance set by the government. If an accident takes place, third-party liability insurance protects other people financially by covering any injuries or damages that are caused by your vehicle to other people.

• Purpose: Covers damage to others’ property or injury.
• Best Fit: Budget-conscious drivers.

Collision Coverage: 

If you don’t have comprehensive coverage, collision coverage pays for repairs minus your deductible.

Simply put, this is the safety net for those who do not need comprehensive coverage. Especially older car owners. But this gets your car back on track without breaking the bank.

• Purpose: Covers damage to your car in accidents.
• Best Fit: Cars that do not need comprehensive coverage, bikes.

Personal Injury Protection (PIP):

Personal Injury Protection (PIP) pays for more than simply medical expenses if you are injured. In the event of an accident, it covers you and other travellers in the car regardless of who is at fault.

PIP covers medical expenses, missed income, and even necessities like child care.

• Purpose: Covers medical expenses for you and your passengers.
• Best Fit: Drivers without comprehensive health insurance, bikes riders

Gap Insurance:

Let’s say you have a car on loan and it’s gotten into an accident. In such cases, GAP insurance will pay the difference between how much you still owe on your loan or lease and how much your car is worth now.

This is a saftey net that takes your place in closing out your loan.

• Purpose: Covers the difference between the car’s value and what you owe in case of total loss.
• Best Fit: New car owners with a loan.

Taxi Insurance:

People who drive for Uber and Ola need taxi insurance, which is also known as business car insurance.

It’s made to handle the risks that come with having a taxi business. It protects the car, the driver, the customers, and other people.

• Purpose: Extends coverage for drivers working with rideshare services.
• Best Fit: Uber or Ola drivers.

Pay as You Drive Insurance (PAYD Insurance):

Usage-Based Insurance (UBI), sometimes referred to as Pay as You Drive (PAYD) insurance, adjusts your rates based on how you drive.

Your premium will go down the less you drive and the safer you drive. It gives you control over your insurance rates based on your real driving behaviour, much like a personalised plan.

All you need to do is notify them of the distance you’ll travel and stick to it.

• Purpose: Premiums based on driving behaviour.
• Best Fit: Safe and low-mileage drivers.

Vintage/Classic Car Insurance:

Let’s say you have a 1960’s Padmini. You cannot just get normal, comprehensive insurance for that car.

For those vintage cars, Classic Car Insurance is the one to opt for. It offers specific coverage for beloved classic cars while taking into account their special use and worth.

It provides customised security while maintaining the elegance and heritage of your vintage vehicle, much like a custom policy.

• Purpose: Special coverage for classic or vintage cars.
• Best Fit: Owners of vintage or collectable cars.

Conclusion

Now that you are aware of the many kinds of insurance, be careful to consider your own and others’ needs before choosing insurance. Along with selecting the appropriate insurance, you’ll also need to conduct enough research to choose the best vendor, good add-ons, and other factors. Don’t forget to pass on the information to others! Goodbye.

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