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Choosing Car Insurance: Policy Types

Todays Date: November 21, 2018

Before choosing an auto insurance policy you need to define whether you need insurance only for private needs or both for private and business use. Besides you should fix the time terms. Vehicle insurance requirements may vary in different states. The insurance price is affected by some factors, such as the driving history, the age, and the car type. Here I describe you new and already known coverage types such as auto insurance for business, “gap” coverage, “no-fault”, short term and temporary auto insurance.

You will need business automobile insurance in a case you are a user of a vehicle for business. This policy makes you feel confident about the vehicles you have. Full business car insurance is also useful for professional trailer drivers. The way you use the car determines business coverage rates. Commercial auto policy compensates the damage caused by fire, flood, vandalism, windstorms, theft and disasters. Besides business policy provides all the common options such as liability and collision/comprehensive coverage.

In case if you lease or loan a vehicle and your car is stolen or destroyed by accident, theft, fire, flood, hurricane or act of vandalism then a gap may appear between the sum of your debt for the lease/loan of the vehicle and the market price your insurance company covers. Gap insurance policy ensures you compensation of this difference in case of total loss. So when you lease a car or made the first payment buying it, this insurance type is indispensable. This service is often included in the loan or lease contract.

To deal with the uninsured drivers who are not able to pay the damage in cases when they are guilty of the accident you can choose a no-fault car policy. The first party benefit payment is called personal injury protection. But “no fault” rules presuppose a number of requirements too. You can sue the driver who caused the accident in order to get full compensation if the policy payments is lower than your medical expenses. And the driver may advance a claim for injuries and suffering that he’s got. The threshold of this policy always depends on how serious injuries are. The requirements may be expressed as a monetary threshold (total amount of medical charges) or as a verbal threshold (verbal description of injury demands).

Short term auto insurance can be very effective for you especially if you have a moving truck. Short term car policy ensures the compensation for a time period you need. If you travel by car or just borrow a vehicle you will need the short term auto insurance. Short term car policy and the full-length policy have the same options as full medical services, collision repair and reflect liability compensation. The compensation amount of the short-time auto insurance policies is the same while the time may vary.

General term of car insurance coverage is 1 year. But often you don’t need to use a vehicle for a long period. For example you can need a policy for the vehicle of your friend because you take it for a travel. It works for 1 – 28 days including the options like “Fully Comprehensive” and “Third Party”. You can also need it in the case if you have bought an auto but you haven’t chosen a full car insurance policy. But in spite of that temporary coverage cannot replace full-length cover. Because it was created for emergencies and it is out of standard situations.

Knowledge is power. That’s why you have to know more about gap vehicle insurance coverage. In some cases you may also need an additional information about short-term vehicle insurance policy. To make the right choice – visit Auto Insurance Guide.

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