Guess one can say that shopping for a car insurance is quite a confusing ordeal, especially if you do not have a clear idea about the various options available and what type you require, depending on your driving habits.
A general rule is that before purchasing your car insurance policy, decide upon the extent of car insurance coverage you require. Of course this co-relates to how much insurance you can afford.
Deciding on your car insurance coverage is not easy. Care should be taken to arrive at a balance between the required coverage and your budget. Do not compromise on the essential coverage or else your insurance policy will fail.
The first step in deciding what type of a policy is to take a close look at your driving record. Monthly premiums are greatly influenced by how good or bad your driving record is. Look around and identify the different types of coverage offered and the extent of protection offered by each. The golden rule applies - ask if incase of doubt.
Types of Car Insurance Coverage
Which policy should one select? This is a primary concern for a car insurance consumer. An in-depth and clear knowledge about the different plans available in the market will help make the decision easier.
A brief description of policies available in the market are:
1) Bodily Injury and Liability Car Insurance Coverage
This is used when you become obligated to pay for the bodily injury sustained by another person, in the event your vehicle gets into an accident.
2) Collision Insurance
One of the most favorite policies, this plan pays for any damage that is caused to your vehicle in a collision with any vehicle or immovable objects, eg. trees, etc. The best thing is that you may avail benefits under this policy even if the accident was your fault.
3) Comprehensive Coverage Insurance
A general sort of policy, this policy offers compensation for freak damages, such as fire, theft, floods, hitting an animal, etc.
4) Car Rental Insurance
Required against damages if your vehicle is a rented one.
5) Medical Coverage
Purchase this policy to claim for any medial expenses arising due to a car crash or any other accidents. This policy will pay for your and your covered passengers for expenses incurred in this context irrespective of who is at fault.
There are many more but the above-listed are the primary ones. Look around and select the appropriate one.