Having your own ride is a milestone for pretty much everyone.
Saving enough to buy your own car or motorcycle is challenging enough and one might think that the money-pinching is over once you get your vehicle. What happens then if you get into an accident and you need to repair your ride? Repair is very pricey and one way to avoid having to deplete your savings is by getting your vehicle insured.
Auto insurance is an insurance policy designed for your financial protection in case your vehicle is damaged and/or one sustains bodily injuries from traffic collisions or other such events.
There are many types of car insurance based on how much the insurance covers. This ranges from the minimum allowed up to a full range of coverage
• PLPD insurance
PLPD stands for personal liability and property damage. Personal liability is also referred to as bodily injury. This is considered the minimum car insurance one can get. This insurance is for when a driver is at fault in a collision with another vehicle or other inanimate objects.
This covers the other person’s medical bills in case they sustain any injuries caused by the collision. This also applies if you cause damage to property with your vehicle like street signs or other vehicles. Do remember this covers damage caused to others by your vehicle.
• Comprehensive insurance
Comprehensive car insurance basically covers your car from damages not caused by collisions. This insurance pays for your car’s repair when it is damaged by fire, a falling object, vandalism, animals, and natural disasters like floods and rockslides.
It also covers theft of your car.
This also works when you find your parked car inexplicably damaged.
• Collision insurance
Collision insurance is similar to PLPD insurance but this time it applies to your car.
This insurance applies when you are at fault in a collision involving your car and other vehicles or property.
Damage caused by potholes is also covered by this insurance.
• Full coverage insurance
The above insurance types can be combined into one full coverage insurance.
This does mean that this type of insurance will be the most expensive.
There are also specialized insurances for your car such as for roadside services or when personal property is stolen from within your vehicle.