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Making Sense Of Car Insurance

When it comes time to get auto insurance for your car, you will be faced with decisions about various types of available insurance. Basically, there are six different parts of an insurance policy. Some of them are mandatory when you purchase car insurance, and some may be optional. Here is a brief explanation of the different types.

Collision Insurance:

This part allows your car to be paid for when you get into an accident. If you were to hit another vehicle, another vehicle hits your car, or you hit another object (such as a tree), then the damage to your vehicle is covered. It also will cover your vehicle if your car rolls over, too. There are some limitations to coverage, such as driving stunts and racing your car, which could void your coverage for one of those scenarios. This coverage is for when you are driving your car.

Comprehensive Insurance:

This coverage will protect your car when you are not driving it or when it is parked. These situations are not listed under Collision Insurance. This means that if your car were caught in a fire, flood, or is vandalized, stolen, or damaged by a falling object, it would be covered. For older cars that are not worth much, you probably should drop the Comprehensive part of your policy.

Medical Payments:

This part of your policy provides medical coverage for any bodily injuries to you or your passengers while you are driving. It also covers people who drive your car with your permission, or you and your passengers when you are driving someone else's car. Funerals are covered in the event that any deaths may occur. This component of your policy may be called Personal Injury Protection in some states.