Why should you care about car insurance? Is it important? Is it worth the money you are going to spend on it? If you a commercial driver, you definitely need commercial auto insurance. And here’s why.
Obviously, the reason why you need it is that it will get you covered in case you get into any kind of accident. As a customer, your losses will be covered and you won’t have to worry about where to get cash to restore your car.
So, car insurance helps you protect yourself against three different things:
- It relates to anything you’re liable if you hurt someone or damage them or anything that you yourself are responsible for. For example, you caused an accident or you caused the occurrence.
- Property damage. If you damage their house, their car, or you hit the mailbox, that’s their property. That’s called a property damage
- Medical expenses. Then there is another part which is medical. It covers yourself so if you could hurt because you caused an accident or something happens or just someone hit you.
Collision insurance protects you from losses that as a result of accidents with road signs, other vehicles, potholes, etc.
It is important to remember that collision coverage only handles repair and replacement costs up to your vehicle’s actual cash value. It’s not how much you paid for it or still owe the loan. Instead, the actual cash value is the vehicle’s current value. It includes its current condition, mileage, etc.
With this coverage, you’ll be asked to select a deductible. It’s the amount you’ll be responsible for paying for each covered loss.
Comprehensive Car Insurance
The second type of damage coverage for your vehicle is comprehensive car insurance. This one covers damages your vehicle incurs from non-accident events like weather wind, hail or ice as well as theft and vandalism.
There are two other types of personal coverage that you may find to be helpful. They are gap insurance and rental reimbursement. Rental reimbursement comes in handy if your car is not drivable as the result of a cupboard and you need to rent another car. It is optional.
However, in some cases, it may be very convenient for you when you need to leave your car in the repair shop and don’t have any other car to use instead of it. So, you have nothing to do but to rent a car, right? That’s where this coverage can come in handy for you.
If your vehicle is financed, you may also want this insurance. It pays the difference between the current value of a vehicle and the amount that you still owe to a loan holder. This can be a good option if you a participant in a car loan program. Basically, it protects you from owing to the bank more than the actual cash value in the current situation taking into account your total loss.
However, before you may want to opt-in for this kind of insurance from your agent be sure to check a loan agreement carefully. The reason for this lies in the fact that it can be already included in it. And it may appear that you don’t need it as you already have it.