February 23, 2019

Know What Type Of Motor Insurance Is For You

Motor insurance is a policy that covers any or all incidents that may occur concerning a motorized vehicle and it’s driver/owner. Different states have different laws for motor insurance. Whether you buy a new car or lease/rent a car, you should get a motor insurance cover. Although some states allow the drivers/owners to drive their cars on the roads without insurance, most of the states have a minimum required liability insurance. Before you buy a policy, you should know which policy suits you best.




There are a number of insurance policies offered by different companies to protect you and cover your costs related to issues concerning your motor vehicle. As this article covers some common types of insurance policies available in the market, it is up you to decide which policy is best for you.


1. Liability Cover
This policy covers the liability of injuries caused to other persons or damage caused to anyone’s property in an accident. Many states have mandated this policy for the vehicle operators, including New Jersey. The court decides whether you cover the cost of repair or restoration of the other party’s loss. In some cases, if your responsibility exceeds your liability cover, you may still have to incur the remaining costs. The court may sell your assets to reimburse the costs if needed.

2. Comprehensive Cover
There may be instances that a vehicle is damaged not because of a collision but due to any other involuntary acts. These acts may include fire hazards, riots, theft, vandalism, explosions, animal attacks, etc. Some companies also cover natural phenomenons such as floods, earthquakes, volcanic eruptions, and many others, that are beyond human control. If you live at a place where there are uncertain dangers preying upon you, you should go for a comprehensive insurance cover. You can club this policy with other policies as well if needed.




3. Collision Cover
The most common type of insurance cover is against collisions. This policy covers the damage that is caused to your vehicle, regardless of who is at fault. Your policy may cover the repairs and restoration costs of your vehicle. In some cases, such as if your car is totaled, you may be paid in full of the value of your car.

4. PIP
In most of the cases, the injuries incurred during an accident are covered by motor insurance. This policy is known as a Personal Injury Protection policy or PIP in short. This policy covers all the medical expenses of the injuries that have been caused due to a collision. Once again, this policy also covers the expenses regardless of who is responsible for the collision.

5. Gap Cover
In case you have loaned a car or leased a car, you may be required to get a GAP insurance cover. If somehow you damage a car to the extent that it is not repairable anymore, this policy comes into play. There’s a catch to it, this policy only covers the gap if your loan or lease period has not ended at the time of the accident. Having said that, the cover is also limited to the first owner only. Moreover, if the amount of loan exceeds your cover limit, you may still have to pay the dues to the financing institute.




Apart from these commonly prominent policies, there are also some other policies available in the market. Other Types Of Insurance:

1. Uninsured And Underinsured Policy: there may be instances when a motorist meets an accident but does not have any insurance coverage or their policy does not cover the total cost of your repairs. In such cases, these types of insurance policies come into play.

2. Medical Insurance: almost all the medical insurances cover you through an accidental medical cost, but there are specifically designed policies for accident cases as well. These may have lower premiums and cover specifically the cost incurred due to an accident.

3. Towing And Labor Coverage: this is another very uncommon type of insurance that covers towing your car from the speedway to the nearest garage and the following labor costs.




Before you go for any insurance, make sure that you comply with the minimum required insurance cover as implemented by your state authority. Another important note to make is that these policies are designed and your premiums are decided on the basis of make and model of your vehicle, the age of your vehicle, your driving history, the region you live in and where you park your vehicle. No matter which policy you opt for, you should know that you can combine different policies to get the best out of them. 



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