Sat. Feb 24th, 2024
Car insurance coverages explained

Within the world of car insurance, there are some essential coverages you need to know about, as well as some that you can add as an additional coverage, just in case you may need it.

Car insurers do this, to help you create a policy that’s tailor-made to you and your needs, rather than a standard policy where you’re paying for things unnecessary for your driving.

With this in mind, we wanted to take a look at the types of car insurance coverages you can add to your policy, to create a car insurance policy just for you.

Scroll to discover more.

Important coverages you need to know about

  • Collision Coverage

This coverage type helps to pay for the repair or replacement, if your car is damaged in an accident with another vehicle or object. This helps you out, especially if you’re the one who’s responsible for the accident.

  • Comprehensive Coverage

Known as the ‘act of god’ coverage, comprehensive coverage helps to pay towards any damage to your car, or help pay towards a replacement, if your car is damaged from an incident that wasn’t a car accident.

If, for example, your car was damaged because it was stolen, vandalized or damaged by an animal or a falling tree in a storm, these are the types of incidents that comprehensive coverage covers.

  • Liability Coverage

When it comes to liability coverage within the car insurance sector, it’s broken into two parts – bodily injury liability and property damage liability.

Bodily injury liability coverage offers you cover if you accidentally injure someone whilst driving, who isn’t a passenger in your car. This coverage will help to cover their medical bills.

Property damage liability coverage helps cover the cost if you damage someone else’s car or personal property. The cover will help pay toward the repair or replacement of the damaged property.

Additional coverages you need to know about

  • Uninsured Motorist Cover

This coverage type is split under two categories – uninsured motorist bodily injury coverage and uninsured motorist property damage coverage.

Uninsured motorist bodily injury coverage will cover your medical bills and lost wages, that result from injuries caused by an accident with an uninsured driver.

Uninsured motorist property damage coverage will cover the cost of repairing your vehicle after getting into an accident with a driver who doesn’t have car insurance.

  • Underinsured Motorist Coverage

Just like the previous uninsured motorist coverage, the underinsured motorist coverage is broken down into two parts – underinsured motorist injury coverage and underinsured motorist property damage coverage.

Underinsured motorist injury coverage is there to cover the cost of remaining medical bills and loss of wages, due to an injury caused by an underinsured driver.

Underinsured motorist property damage coverage is there to cover the cost of remaining repair costs, if you’re involved in a car accident with an underinsured driver.

Now you know some of the types of car insurance coverages you can take out and add to your policy, will you be adding any of these to your auto insurance in Ontario and create a personalized policy for you?

By admin

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