What is Car Insurance policy

Car insurance policy is very important these days. Rising number of cars that are being manufactured, the ease by which they can be obtained through convenient financing options and the need to commute so often be it to work place or take leisurely trips all contribute to traffic congestion. As a result, chances of having accidents rise. As a result, having car insurance policy is made mandatory in many states around the globe. Hence, it is very important for people to understand the terms and conditions laid out in car insurance policy, so as to make most out of the contract. But before that it is vital to have a clear concept as to what is car insurance policy.

Car insurance policy is a contract for the insurance of road vehicles such as cars, motor bikes, trucks etc. As per this contract, you agree to pay a certain sum of amount known as premium at regular intervals, ranging from monthly to annually. Against this premium, the insurance company consents to bear the cost of losses incurred during an accident. There are several types of car insurance policies. Some countries make at least one of these types of policies compulsory to have, while others make more than one type of insurance policy mandatory.

The most basic form of car insurance policy is liability insurance. As per this car insurance policy, you are covered in the event of an accident which happens due to your fault. The coverage includes medical bills, damage to any property and any charges made against your legal responsibility for the accident.

Moving further, it is important to understand what is collision coverage whereby the insurance company agrees to pay for the repairs made to the car in case of a colliding accident. The amount of coverage is arrived at as per the value of the car.

Accidents occur not only due to collision with some other vehicle or physical property, but there are other reasons as well. For instance there are weather related instances as well. Or it may be the case that some animal such as deer bumps hard into your car. What about the damage that your car bears in such cases? Car insurance policy tends to cover such losses as well under the comprehensive coverage contract. However, this gets expensive and seldom fits in the budget of people.

Apart from this, personal injury protection provides for medical bills relating not only to you but all the passengers seated in car if they are to meet an accident, irrespective of whose fault it is. Medical bills in case of such unforeseen incidents can be very troublesome and unprepared for. So personal injury protection comes in quite handy.

Although it is mandated by most of the states to have San Antonio Car Insurance, some people still do not buy the policy. In case of having accident with someone who is underinsured or not insured at all, it is likely that you will not receive the due amount in full to cover your accident damage, unless you have uninsured/underinsured motorist protection.