Car Insurance in Gretna, Harvey, Metairie and River Ridge, LA

June 30, 2016

Components of auto insurance

Insurance is probably one of the best risk management strategies and auto insurance is no exception. As a vehicle owner you face an array of risks and car insurance is a cost effective way in which to protect yourself from the financial implications of loss, damage or injury related to motor vehicle incidents. Botsay insurance are risk management professionals and can help you with cost effective auto insurance in Gretna, Harvey, Metairie and New Orleans, LA.

When it comes to auto insurance you want effective and affordable coverage to match your real risks. At the same time, you don’t want to pay for coverage you will never need or use. That is why it is good to have some understating of the different components of car insurance. Perhaps the best way to break it down is as follows

  • Liability cover
  • Vehicle cover
  • Medical cover
  • Add-ons

Liability cover is one of the most important components of auto and car insurance. You will be held liable if you cause an accident. Paying other people for injuries and damages is out of reach of the average budget, so if you don’t have liability insurance you could lose everything you own.

Liability insurance only covers damages or injuries to third parties. You need to consider your own damages and possible injuries. To cover damages to your vehicle you need some form of collision insurance. Collision insurance will pay for the repair or replacement of your vehicle following a road accident.

You also need to consider your own medical costs. Personal Injury Protection (PIP) is a component of car insurance that will pay for your medical costs irrespective of who was at fault. This is also referred to as no-fault car insurance.

Other possibilities can be covers by way of add-ons or additional coverage. These could deal with storm damage, road side assistance, towage, car rental, alternative transport and so on.