Car Insurance Types That Everyone Should Be Aware Of

Car Insurance Types That Everyone Should Be Aware Of

Different types of insurance coverage are available on the market today. But which one (or two) is the best for your vehicle? This post can help.

1. Liability insurance

Liability insurance covers you in case you are involved in a car accident and would be considered responsible for the entire incident by the law itself.

Liability insurance covers the costs of repairing any damage that has been to have occurred as a result of your actions.

It will also cover medical expenses in the event of an injury that has been proven to be specifically the result of your actions, thereby helping to minimize your financial loss.

2. Full insurance coverage

What happens if something happens to a car that has no connection with any accident covered by an insurance?

This may very well happen as a result of:

  • Damage caused by bad weather (a tree falls on your car as a result of a night storm)
  • Damage to animals (you hit a wild animal on route by mistake)
  • Theft (your car is stolen) etc.

Do you think your insurance company would cover such incidents? They would not do it unless you opt for full insurance coverage.

Comprehensive insurance coverage is one of those things that is good to have if and ONLY if it can fit into your budget. It's really expensive.

3. Collision insurance coverage

If your car is completely out of order (as a result of the accident), collision coverage will pay you the full value of your car. Similarly, if the cost of repairing the car exceeds the value of the vehicle itself, the insurance coverage will reimburse you the entire value of your car.

Collision insurance is a must if you are the owner of an expensive sports car or any luxurious humvees.

4. Coverage of bodily injury

Personal injury insurance mainly concerns injuries associated with an accident.

You can use this insurance to cover your medical bills in case of an injury from an accident. The same insurance should also cover for your passengers no matter who is responsible for the accident.

5. ATE Insurance or after the event (a very special form of insurance)

** You do not have to buy this insurance unless the situation asks for it.

After-the-event insurance is a form of insurance that covers a plaintiff's legal costs to the defendant in the event that the claim is unsuccessful in court.

As its name suggests, ATE insurance is normally underwritten AFTER the occurrence of any event (or any accident).

When should you go for ATE insurance? We will explain this with an example.

Suppose, you were involved in a truck accident that you believe is due to the negligence of the driver. You sue the truck driver accordingly and you make an all-in-one claim.

The court investigates and discovers that the driver of the truck is not responsible for the same thing. As a result, your application is denied and you are obliged to refund the various legal charges to the defendant.

This is where ATE insurance is useful to you. ATE insurance can reimburse all expensive legal costs to the defendant, saving you valuable amounts.

So what is the moral of the story described above?

Quite simple!

Opt for an ATE insurance as soon as you feel that you might NOT have a good chance of winning the claim in your favor. Apart from this article if you would like to know more details on ATE insurance click here

With that, we’ll bring this post to a close. Hope you had a good read. 

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