Car Insurance Coverage 101

No one wakes up thinking they need car insurance today, but life happens so here’s everything you need to know while picking your car policy or already got it, but forgot to read the fineprint.

Car Insurance Coverage

Good car insurance policies provide coverage for various unfortunate events including:

• Accidents (we hope you knew that already)

• Theft (because apparently your fiat 128 is irresistible to someone)

• Fire damage

Accident Coverage: The Blame Game

Here's something refreshing: with car insurance, fault doesn't matter when it comes to getting your car fixed. Your coverage applies regardless of who’s at fault, unless there was a legal violation involved. Yes, driving the wrong way “because the u-turn was far” counts as a legal violation.

Total Loss isn’t really a loss with insurance

Car insurance likes rules, so to deem your car a "total loss" they look at the repair amount. If it equals or exceeds 50% of your insured amount, your car is officially eligible for total loss status and you'll receive compensation. (See? There’s a light at the end of the tunnel, you just had to finish the paragraph)

If your vehicle is deemed "total loss" after an incident, compensation is typically determined by comparing:

• The current market value (what someone would actually pay for your car)

• The insured value in your policy

Whichever figure is lower becomes your compensation amount…yes we are transparent like that!