If you are on the journey of getting your vehicle insured, you’ve come to the right place! We have listed the major types of car or vehicle insurance here. You can go through each type and familiarize yourself with them. That will help you better decide which one you need when you discuss it with the insurance agent.
1. Preferred Drivers
Preferred drivers are people who have no history of car accidents or reckless driving. They have clean records and show responsible behavior on the road. That makes them the least risky drivers to insure. Insurance companies offer you premiums based on your risk level.
Since preferred drivers pose the least risk, they pay the lowest premiums. Insurance companies like a balance between low, standard, and high premiums in their pool of clients. You can talk to an insurance agent to see if you qualify for this type of auto insurance.
2. International
Do you travel a lot, and does your car accompany you? If you plan on taking your vehicle out of borders, you may need international car insurance. International car insurance takes care of any gaps left by your local insurance, which makes the policy work in any country.
Some countries, like Canada, accept American car insurance without any changes, but others, like Mexico have additional coverage requirements. An international policy ensures that you are insured everywhere so you can plan your next cross-country road trip without any obstacles.
3. Learner’s Permit
Is your teen old enough to get behind the wheel? Once a teenager gets their learner’s permit, they can’t wait to take out the family car. Car insurance policies insure the car, not the driver, however, you must confirm with your insurance company if your teen is covered before letting them drive.
If they have bought their own car or you have one for them, and their name is in the title, then you will likely need to purchase a separate policy on their learner’s permit. This deserves a discussion with a seasoned vehicle insurance expert.
4. Pleasure
Different cars have different uses. Given that, their insurance policies are worked differently, depending on the risks and liabilities they pose. So, there is a separate kind of insurance for cars driven just for leisure and not used to commute to work.
Pleasure car insurance is applied to this category and usually charges lower premiums. That is because this car is not expected to be taken out every day, during rush hour to get to work, or for running grocery errands like a family car.
5. Work
Work car insurance applies to cars that are regularly going to commute to work, or handle the school drop off, etc. These cars are usually driven more and in rush hours, increasing their risk of experiencing wear and tear or accidents.
Since these cars are more liable to accidents, work or commute car insurance is priced higher than pleasure car insurance policies. This is done so that assets are insured according to the risks they impose.
