The average cost of personal car insurance is around $1,771 per year.
This translates to around $148 per month. However, the question is, what do you get for your insurance premium? This is an important question to ask since there are many vehicle insurance types to choose from.
Each kind of personal auto insurance is unique and covers a variety of aspects related to your vehicle. Some are designed for cars that don't travel much, while others are designed for commercial vehicles. This is why it's so important to understand the various options before choosing the right kind of insurance policy for your car.
Want to learn more about personal vehicle insurance? You're in the right place. Here's an in-depth guide comparing different kinds of car insurance.
Car Insurance
Before we dive into the different kinds of car insurance, it's important to understand the basics. This begins with what car insurance actually is. Car insurance is a dedicated insurance policy that's taken for your personal or commercial vehicle.
This means that the insurance policy itself is linked to an underlying asset, your vehicle. Most car insurance policies are designed to protect you from unforeseen costs associated with car ownership. This can range from accidental damage to wear and even road accidents.
When your car is in need of repairs, the car insurance policy will kick in to help you with those costs. If your car can't be repaired, some auto insurance policies will step in to help you get another car. This can be done by paying you out for the market value or replacement value of your car.
As mentioned above, these benefits can vary from policy to policy.
Types of Auto Insurance
There are a few different kinds of auto insurance policies that you can get for your vehicle. Many people assume that there are vastly different policies for personal cars and commercial cars. However, both these policies operate in a very similar way.
The risk profile for commercial vehicles is just a bit higher than the average personal car. This is because commercial vehicles are driven more than the average car. More time on the road means more risk.
However, auto transport insurance is a unique policy that offers impressive benefits as well. This insurance policy is designed to protect your car when it's being moved.
Personal Car Insurance
Personal car insurance is one of the most popular and beneficial insurance policies that you can take. In many places, car insurance is compulsory for all cars on the road. Here's a breakdown of everything you need to know about personal car insurance.
How Personal Car Insurance Works
Car insurance works in a very straightforward way. Every month you will pay the insurance company a premium. This will activate your car insurance and ensure that your vehicle is protected.
What's Included in Personal Car Insurance
Personal car insurance can vary from policy to policy. However, the biggest difference between personal car insurance policies are usually the amount of money that the car is insured for.
In most policies, the insurance company will step in to help cover the cost of any accidental damage that occurs to your vehicle. This can range from bad weather to a road accident. If your car can't be repaired, the insurance company will help you cover the cost of a new car.
What's Not Covered by Personal Car Insurance
Most car insurance will cover all accidental damage. However, they don't cover purposeful damage. In addition to this, some auto insurance policies won't insure your car during transit.
If you're getting electric car insurance, make sure that they cover battery damage and offer roadside assistance if you ever run out of range.
Auto Transport Insurance
Auto transport insurance is a unique car insurance policy that offers you added protection. This kind of insurance is essential for people that are moving to another town or across the country. Here's a quick overview of auto transport insurance.
How Auto Transport Insurance Works
Auto transport insurance works in a similar way to personal car insurance. You pay a premium to an insurance company so that your car is protected while it's in transit. There are a few local car insurance companies to choose from, so it's important you read all the fine print to find the best option.
It's vital to have insurance for classic car shipping. This is due to the value of the car that's being shipped. In some cases, it's even part of the required documents to ship a car.
What's Included in Auto Transport Insurance
Auto transport insurance, also known as car carrier insurance, protects your car while it's in transit. This means that your vehicle is protected while it's not in your possession and is on the road. The insurance policy that you choose will note how long the car will be covered along with how much the premium is.
Checking a car is insured is important before handing it over to a transport company. You should look closely at the premium because car hauling insurance costs vary from company to company.
Auto hauler insurance is one of the best policies to have, as it covers the basics of transporting your car. This is usually mentioned in the bill of lading as well. If you want to know how much it would cost to ship your car, check out this car shipping calculator.
What's Not Covered by Auto Transport Insurance
Moving insurance is a dedicated insurance policy that's designed for cars in transit. This means that your car is protected while it's being handled by a professional moving company. This is not a substitute for personal car insurance that you need when you collect your car from the transit company.
This is often seen as a stand-alone insurance policy that's designed to give you extra peace of mind while transporting your car.
The Importance of Auto Insurance
When it comes to protecting your car, personalized car insurance is always the first place to start. There are different kinds of auto insurance that you can get for your car. However, they are all designed to protect your car so that you have peace of mind when you're on the road.
It's important to make sure that the personal car insurance you have also covers your car for cross-country car shipping or even when you ship a car to another state.
If you want to learn more about how Nexus Auto Transport can help transport your car safely, contact us today.
