No matter how careful you are, there is no such thing as a fool proof plan. This has been seen over and over again and depicted in series such as Chernobyl and Money Heist. Of course, the series depict the nature of humans and no matter how careful you are you will make errors. But it is not always that you could afford those errors in real life.

Insurance as A Cushion

As a result, humans have invented concepts, products and services to serve as cushions against the pitfalls in their plans. Often, these services come in the face of insurance, which extends to several different fields such as life insurance, health insurance, accidental insurance and so on. However, one of the most common modes of insurance, car insurance, is not just an option but a legal obligation in several countries.

Therefore, all around the world, brands such as iSelect offer their car insurance services for people to avail and safeguard their car against damages. Now, insurance does not just pay you the money in case you crash your car somewhere. The money that you get is what you saved in the first place through your annual premium payments.

These payments not only accumulate over time, but also multiply. You earn bonuses on the amount that you have saved with the insurance company. The terms for these bonuses may be different. For instance, you might get a percentage of bonus on your premium if you have not claimed it in minor damages in the last year or so.

Different Types of Car Insurances

Now, there is not just one type of car insurance that reimburses you for the damages to your car. There are different types of insurance within car insurance that give you different services. Here are the main types of car insurance:

• Liability Coverage: Liability Insurance is for reimbursement of damages to a third party. Say, you had an accident and hit somebody’s car and broke their bumper and tail lights. Of course, the person will ask you to reimburse for damages that you caused to their car. The insurance provider will pay the charges for these reimbursement.
• Comprehensive Coverage: Comprehensive coverage includes reimbursements for damages to your own vehicle but for damages that are caused from reasons other than accidents. Where coverages may differ among different service providers.
• Collision Coverage: Collision coverage, as the name suggest, covers you for damages to your own car from a collision. This then will also cover damages to your vehicle in a hit and run case.
• Totaling Coverage: one of the most difficult types of insurance to handle can be a totaling insurance. This involves reimbursing you for damages to a car when you completely total your car, that is, a complete wreckage.

There are other types of coverages and each one will have different features depending on what package you choose. However, the general features will remain the same no matter what.