All about the types of car insurance coverage

By | December 29, 2022
car insurance coverage

Do you own a car? Before you drive it, you need to buy car insurance. Do you know the factors to consider: the type of car, your driving history, the coverage you want… But have you identified all the types of coverage you can buy?

The different types of car insurance coverage

Here are the main types of car insurance coverage you can choose from to help you choose the best car insurance.

  • Collision: In a road accident, no matter who is at fault, collision insurance covers the replacement or repair of your car, subject to a deductible.
  • Comprehensive: In the event of damage not caused by a collision (e.g. hail or other natural disasters, falling tree branches, vandalism), comprehensive coverage will pay to repair or replace your car, subject to a specified deductible.
  • Personal Injury Protection: This type of coverage pays for medical or hospital expenses resulting from an accident for the persons specified in the insurance contract, even if you are at fault.
  • Third-party liability (for bodily injury and property damage): If you purchase liability insurance, the insurer will pay damages to people who are injured or whose property is damaged in an automobile accident.
  • Underinsured or Uninsured Motorist Liability Coverage: In the event of an accident where the other driver does not have sufficient coverage or even any insurance at all, this insurance covers the damages you personally suffer in the accident.

The different types of car insurance

The different coverages mentioned above can be found in the car insurance packages offered by insurers. Some of these plans contain several of these coverages, while others contain only one: for example, in a third party insurance plan, you will only be able to take advantage of the third party liability coverage. In the higher packages, you will have to pay attention to the additional guarantees and covers offered. Here are the three main types of car insurance:

  • Third party car insurance: this is the minimum compulsory coverage to be able to drive. Also called “Civil Liability”, it allows you to cover material and physical damages inflicted to a third party when you are responsible for the accident. This formula is ideal for insuring yourself on a small budget: if you are a young driver, if you have an old car or if your vehicle has a high mileage, taking out third party car insurance can be a solution.
  • Third party car insurance + glass breakage: in addition to the mandatory minimum coverage, you are covered if one of your windows is damaged.
  • Intermediate plan: this is a third party plan to which it is possible to add additional guarantees and indemnities, depending on what you consider most essential: theft, glass breakage, fire, vandalism ….
  • All risk insurance: this is the formula that will cover you the best, but also the most expensive. You will be covered for the vast majority of claims, and you should find all the coverages mentioned above.

Having these plans in mind is essential before you buy car insurance, or do a car insurance comparison. The choice of plan and coverage you need will determine the level of coverage you want and the level of rates you will be offered.

Leave a Reply