Different Types of Vehicle Insurance

Different Types of Vehicle Insurance

Getting in a car accident is something that no one ever wants to think about happening to them, but the reality is that there are around 20,000 car crashes in the United States every day. So, it’s important to have auto insurance to protect you, your passengers, and your automobile in any kind of accident that may occur while on the road. Having at least some type of liability coverage is mandatory in most states, but there are additional types of automobile insurance that will provide you with more coverage. Here are the different types of automobile insurance that you can get.

Liability Coverage

Liability coverage is the most basic form of auto insurance required in most states. It covers the other person’s bodily injuries and automobile if you are to cause an accident. However, it does not cover you or your vehicle.

Comprehensive Coverage

Comprehensive coverage helps to insure your car from things like theft, water damage, fire, natural disaster, and vandalism. If your car is damaged by one of these things comprehensive coverage can often help you pay to replace it. However, you will have to pay a deductible.

Collision Coverage

This is the coverage that will help you out if you’re involved in an accident with another vehicle or with an object such as a tree or light post. Typically, with collision coverage you are still required to pay a deductible, but the insurance will cover the rest of the cost of your damaged vehicle.

Medical Payments Coverage

This type of coverage is required in some states but optional in others. It covers the medical expenses of you and your passengers if you are to get in an accident.

Many insurance plans cover multiple aspects of these types of coverage. When shopping for auto insurance, be sure to ask questions and gain a good understanding about what insurance plan is right for you.

What does common life insurance cover?

What does common life insurance cover?

There are different types of life insurance coverage, but most life insurances have similar components to them. Life insurance is meant to cover your loved ones and dependents in the case of your death. It’s not something that anyone really wants to end up having to use, but it can put your mind at ease knowing that the people you care about will be covered in case something happens to you.

Components of Life Insurance

The most common components of life insurance are the policyholder, the beneficiary, the premium, and the death benefit. The policyholder is you, the person who owns the life insurance policy. The life insurance gets paid out to the beneficiary if the policyholder dies, and there can be more than one beneficiary. The premium is the money that is paid either monthly or annually to keep the policy active. The death benefit is the money that is paid out upon the death of the policyholder which goes to the beneficiaries. Most life insurances have these four components. However, certain types of life insurance differ.

Life insurance plans have different types of coverage. For example, some life insurance is term life insurance which lasts for a certain period of time and when the term is up the policy expires. With term life insurance the beneficiaries are only covered if the policyholder dies within that period of time. Permanent life insurance lasts as long as the premium is being paid. There is no expiration date to permanent life insurance which typically makes it more expensive than term life insurance. Within permanent life insurance there are different types such as whole, variable, and universal.

When shopping around for a life insurance plan it’s important to get quotes from many companies and ask a lot of questions. The more you know about life insurance and what you’re looking for, the better you will be able to understand the different coverage options and get the right plan for you.