What Should Your Car Insurance Cover?


If you look from the monetary aspect, you will find that buying a new car is only half the battle done. Buying a suitable insurance policy is equally important.  A single car insurance may include several types of coverage, and one needs to consider all the aspects that are based on the insurance policy. For this, it is important to be educated with what the law demands and also what liabilities may be attached to it.

In this generation, an automobile owner can get car insurance quotes from physical stores as well as from their online portals. Apart from this, if you are thinking of buying a car insurance online, there are many independent web-based portals that compare all the insurance policies and provide all the information in order to make an informed decision.

So if you have just purchased a new car, or looking to switch from your existing insurance provider, here’s a list of all the elements your car insurance should cover to meet the legal criteria as well as cover your personal safety.

What the state law says?

Every state has a minimum benchmark for insurance coverage for your car. These criteria, pre-set by the state, may include third party safety, personal safety as well as the damage done on the car.

So irrespective of the state you are in, you may be asked to buy insurance that covers the following points:

  • Third party liability
  • Personal injury
  • Property damage
  • Personal Car damage

Third party liability

Liability insurance is one of the most important aspects of a motor insurance. It basically covers for the damage or the injury caused to the other persons, excluding you, involved in the accident. This third party liability insurance covers for any bodily injury caused to any person or any damage caused to a nonliving object. For bodily insurance covers, the insuring company will have to pay for the medication of the person who has been hurt in the accident. Similarly, if any property has been damaged, the company will have to pay for the repair. This property may even include the repair or replacement of the other car that was involved in the accident.

Personal injury cover

Personal injury covers any type of damage and injury caused to the person buying the insurance. It pays for the medical expenses in case of accidents in which you are at fault. The amount of money that will be paid by the insurer depends on the type of insurance you choose and also the amount of premium that you pay. In general cases, the amount that will be paid as a reimbursement for medical expenses are pre-set and pre-defined at the time of buying the insurance in the contract sheet.

Property damage

Property damage, in an insurance, covers the damage that is done to a car or property in an accident in which you are at fault. In case an accident has taken place in which you are at fault, the other car you have crashed with, or a personal garden in which you have intruded in by breaking the concrete fencing, will be covered under this head.

In the same way, if you have had an accident in which the opposite car was at fault, you will be compensated by the insuring company of the other person.

Personal car damage

This is one factor that depends on what type of car you are insuring. This insurance mainly covers the repair or replacement of your car, depending on the amount of damage and the type of insurance that you choose.

If you have insured a general passenger car that belongs to the budget segment, the insurance will cost lesser and the premium that you will need to pay will be lower. On the contrary, if you are insuring a luxury car or a car that costs a lot, like an Audi or a BMW, the insurance policy will cost a lot more as the damage coverage for these cars is higher. Hence, you will need to pay a higher amount of premiums.


Buying an insurance is very easy these days as the number of insuring companies have gone up. Moreover, with one nationalized body regulating these companies, the trust in them has increased over the years.

You will find that almost every second automobile website will assist you with your car insurance and will help you to find the best-suited company and insurance scheme for you. But before you can take a plunge and start acting on it, it is a vital step to get informed about the basics of insurance and what all your policy should cover. After all, it is not sufficient to only follow the directions provided by law. Personal safety is also a huge matter of concern.