Choosing Incredible Insurance Coverage

After struggling for years with an incredibly expensive insurance plan, I realized that there had to be something that I could do to make things right. I started shopping around for a business that could help me to make things right, and I was able to find an insurance policy that fit well with my budget and my lifestyle. The premiums were low and the coverage was great, which is almost unheard of these days. This blog is all about choosing incredible insurance coverage for you and your family, so that you can enjoy a happier, healthier life. Check out this blog for more information.

Understanding The Two Types Of Auto Insurance Plans

Insurance Blog

You can apply for different types of auto insurance policies for your car. However, these policies fall under two categories. The categories are compulsory auto insurance and optional auto insurance. 

Compulsory auto insurance plans are the auto coverage plans that the government requires all motorists to have. Hence, driving your car without compulsory auto insurance plans is illegal. Optional auto insurance plans are extra insurance covers you can add to the mandatory auto insurance plans. Hence, it is not illegal to drive without any of the optional auto insurance plans.

To better understand the difference between compulsory and optional automobile insurance, here is an elaboration of both.

1. Compulsory Auto Insurance Plans 

Compulsory auto insurance plans aim to cover any injuries or property damage you might cause while driving your vehicle. Hence, mandatory insurance plans don't cover you or your vehicle. Instead, they cover people who might get injured by your car during an accident or incur property damages caused by your vehicle. 

There are two types of compulsory auto insurance, namely: 

Bodily Injury Liability Coverage

If you cause a car accident or harm a pedestrian with your car, bodily injury liability cover caters to the injured person's:

  • Medical expenses
  • Loss of wages by the victim due to hospitalization
  • Post-hospitalization treatments such as therapy

Hence, bodily injury liability compensates people who incur injuries resulting from your car. But your bodily injury liability cover doesn't cover the injuries you sustain during a car accident. 

Property Damage Liability Coverage

Property damage liability insurance covers any damages you might cause to other people's property with your car. For instance, if you cause a car accident, property damage liability insurance compensates the victim for damages caused to their vehicle. Furthermore, if you hit an electric pole or someone's wall, property damage liability coverage will reimburse the affected parties for the damages. 

Nonetheless, property damage liability insurance doesn't cover damages incurred by your car.

2. Optional Auto Insurance Plans 

Since compulsory automobile insurance doesn't cover you or your vehicle, you can seek extra cover in the form of optional auto insurance. The most common types of optional automobile insurance coverage include:

  • Personal Injury Protection: Covers any injuries you might sustain from a car accident
  • Collision Insurance: Covers your vehicle against damages incurred during a collision
  • Auto theft insurance: Covers your car against theft
  • Uninsured motorists insurance: Covers injuries and damages caused by an uninsured motorist to you and your car
  • Flood insurance: Covers your vehicle for damages caused by floods
  • Comprehensive Auto Insurance: Covers your vehicle against damages that result from non-collision events. For instance, damages caused by fire, weather, burglars, acts of nature, etc.


27 October 2022