Purchasing a car, whether brand new or used, also means that you need insurance for it. Like everywhere else in the U.S., Illinois vehicle insurance is required in Harvey, IL. But since there are many kinds of insurance, knowing which one to get can be confusing to most first-time car owners.
To help you understand them better, you should know that there are three broad categories of auto insurance with subtypes within each category. The kind of coverage you need largely depends on the type of vehicle you have and your financial situation as well. Let’s take a closer look at the three main kinds of vehicle insurance.
This is the most common kind of insurance coverage for vehicles. Every car owner needs this coverage because it is prescribed by law. It protects other people in case a vehicle gets involved in an accident.
Cars involved in an accident can cause damage, injuries and even death. Car owners will be financially responsible for all damages incurred in these mishaps. Liability insurance saves owners from the burden of financial responsibility for any damage, injury or death that the vehicle might have caused.
Uninsured Motorist Insurance
Another common type of vehicle insurance is for the uninsured motorist. Commercial vehicle owners who allow others to drive for them need this kind of coverage. The car owner’s insurance will be the one to cover damages if the driver does not have insurance, or his insurance coverage is not enough to pay for the damages incurred.
This is a common scenario in families where there are several members using a single car. The head of the family has the responsibility to get uninsured motorist insurance to ensure that there is appropriate coverage in case an accident occurs regardless of who is driving the vehicle.
This type of insurance provides coverage for damage to the vehicle itself. There are two categories in this kind of insurance, the collision and comprehensive coverage. Collision insurance covers damage to the car if it is the one that caused the accident. Comprehensive insurance, on the other hand, covers any damage regardless of how it occurred or who was at fault.
This insurance coverage includes theft and damages due to extreme weather conditions. The need for this kind of insurance largely depends on the value of the car. Brand new cars and luxury vehicles will need comprehensive insurance while old beaters may not require physical damage coverage anymore.
Getting vehicle insurance coverage is much like getting insurance for your home. Cars are valuable possessions that you need to protect. New car owners need to be familiar with the different types of car insurance to determine which is the best one for their situation and budget.
Insurances with the most comprehensive coverage will obviously cost more than the basic ones. However, getting cheaper insurance may also mean limited coverage. Ask an expert to assess your vehicle and ask for several recommendations from auto insurance providers. The more options you have, the better.