When you own a car, you’re obliged to have car insurance. You may need a basic level of car insurance unless your cars are officially registered as off the road. There are different types of car insurance, and you must choose the right one for you.
Here are some car insurances you may want to consider:
- SR-22 Insurance
Most people don’t know what SR-22 form, SR 22 insurance, or SR22 means until they need one. When you understand what this is and its importance, you can choose a company that offers such a certificate.
SR-22, which is also called certificates of financial responsibility (CFR) filing, is a certificate of insurance proving that your car is insured. Having this certificate means your car insurance coverage has the right requirements that your state insurance requires.
Although it’s not the typical car insurance (since it’s only a certificate), you may need this coverage if you violate one of the following:
- Driving with a suspended license
- Driving without insurance coverage
- At-fault accidents
- Reckless driving
- Driving under the influence
However, if you don’t have any traffic violations, you don’t need SR-22 insurance to drive around legally. On the other hand, you can’t be legally on the road if you have any of the violations listed above and you don’t have an SR-22.
- Comprehensive Car Insurance
When your car causes an accident, the insurance covers it. However, in cases where your car gets damaged for reasons other than a collision, you’ll need comprehensive car insurance. It covers destruction from a collapsing garage, break-in, vandal, run-in with a deer, tornado, and the like.
Unlike liability insurance that the state requires, comprehensive insurance is optional. But if you own a car via financing, your lender may require you to have comprehensive insurance. Also, if you live in a place that’s prone to the circumstances above, you may need to consider getting comprehensive insurance.
Before you can receive the benefits from comprehensive insurance, you need to choose and pay a deductible–the amount you agreed to pay. For instance, you have a car worth USD$10,000 and you’re paying a deductible worth USD$1,000, in case your garage collapsed and destroyed your car, your insurance company will pay you USD$9,000 via your comprehensive insurance.
- Third Party Insurance
Another type of car insurance you may need is third-party insurance. It’s a primary type of coverage wherein a driver at fault will have to pay for the injuries sustained. It also covers damages to the other party’s property your vehicle may have damaged.
Third-party insurance also covers your passengers at the time of the accident. If your vehicle gets involved in a car accident, and you’re the liable one, you’ll compensate for injuries and damages you caused to other people. If you don’t have third-party insurance, you’ll pay it out of your pocket.
The only limitation of third-party insurance is that it doesn’t cover repairs on your vehicle, injury you sustain, and other reasons causing harm to your vehicle.
If you want to drive your car around, have a car insurance to protect you, your car, and the other people when unforeseen events will occur. Even if you’re a careful driver, some catastrophes may still happen, and you want insurance to cover for any damages your car will sustain. On the other hand, if you’ve violated a traffic regulation, you’ll need you to carry an SR 22. That way, you can legally drive your car on the road.
Insurance is also essential so it won’t break your bank because the former will cover expenses under its policy.