Many car buyers and existing drivers are not that keen about getting car insurance and one of the reasons why they are quite hesitant to tackle this topic is because of the cost and the lack of understanding. So we will talk about the different types of insurance and what to do in case you get into an accident.

What is car insurance?

Car insurance is a policy that protects you from a significant financial loss in case something goes wrong. You are required to pay a monthly premium to an insurance company. If you get motor trade insurance and you get into a car accident, no matter how simple or severe it is, it will help minimise the cost of the damage.

What are the different types of insurance coverage?

Property

The insurance company will pay for things if your car gets stolen or damaged by fire, hail, road accidents and in some cases even flooding and other natural calamities.

Liability

This type of insurance coverage pays for your legal obligations towards the other party in case of serious injury and property damage. This helps you settle lawsuits that can cost you a lot of money in the absence of insurance.

Medical

This type of coverage takes care of medical bills, rehabilitation and physical therapy of the injured party. In worst cases, your medical coverage also takes care of lost wages and funeral expenses in case of death.

How much money should you pay for insurance?

A car insurance policy depends on the current market value of the vehicle that you are driving, the current status of the car’s ownership and how much can you afford to pay out of your pocket in case potential damages occur. Your monthly insurance premium will depend on the amount that you can spend. The more expensive your car is the more you will end up paying.

However, keep in mind that just because you are paying for insurance, it does not mean that you will not pay anything out of your pocket if you get into an accident. The majority of insurance companies require their clients to pay a certain amount of deductible before they decide to cover the remaining amount. Better clarify this with your insurance agent before signing up for a policy.

What to do in case of accidents?

The first thing that you should do is get your car to a safe spot; however, if you got into a crash in the middle of the road, stay away from the accident site and get in touch with your insurance company to send a tow truck.

Do not apologise to the other party

This rule may be a little hard to take in, but insurance agents will advise you the same thing. Because apologising is the same as an admittance of guilt and it can be used against you. Just take pictures as part of the evidence and exchange phone numbers with the other party.

Leave the investigation to the authorities and your insurance company and hope that everything will be all right.