Insurance: Auto and Vehicle Insurance 101

Vehicle insurance is a financial vehicle that people aren’t necessarily eager to purchase, but you’ll be very glad you have it if you’re ever in a collision. We always hope…

June 29, 2022

Written by Justin Sloan

Vehicle insurance is a financial vehicle that people aren’t necessarily eager to purchase, but you’ll be very glad you have it if you’re ever in a collision. We always hope that everything will go well, but sometimes your vehicle is stolen, damaged in a storm, or you’re involved in a collision. 

Instead of enduring these financial disasters, insurance coverage ensures that you can easily get back to your normal life after something happens to your vehicle. But how does that work? And what does it cover? This blog post will give you the basics of auto and vehicle insurance to make an informed decision on whether or not this type of insurance is for you.

What Is Auto Insurance?

Auto insurance is a contract between you and an insurance company in which you agree to pay the company what are known as “premiums.” Premiums are bimonthly or yearly installments, and in exchange for paying these installments, the insurance company agrees to pay the costs that occur after a car accident. This keeps you from experiencing financial devastation if you ever cause a car collision.

What Does Car Insurance Cover?

Car insurance can cover the following:

  • The medical bills or the end-of-life expenses of the people involved in the collision
  • Property repair bills and medical bills for the treatment of bodily injuries
  • Repair bills for your vehicle and the other vehicle that was involved in the collision

What Is the Benefit of Auto Insurance?

In most states, you’re required to carry liability insurance. It isn’t just the law; it’s also highly beneficial to you. For example, if you cause a collision in which there are bodily injuries and property damages, you’ll be considered to be liable for all of the medical and property repair bills. One accident could easily be financially devastating for you. If you have auto insurance, your insurance company will help you pay all of these bills.

What Is Boat Insurance?

Boat insurance is insurance coverage for your boat. Although your homeowners’ insurance policy may provide coverage for a boat, it may not be enough. For example, homeowners’ insurance policies may only cover a small boat, and the riders you can add may not allow you to take your boat on the beach. To have more extensive coverage, you’ll need a boat insurance policy.

What Does Boat Insurance Cover?

The “all-risk” policy provides you with the most extensive protection for your boat. Although it is called “all-risk,” this doesn’t mean that every single risk will be covered. The “all-risk” policy covers every risk except those that the policy omits.

You’ll be able to add coverage, including towing and assistance, uninsured boaters’ liability coverage, personal effects, and medical payments. In the majority of boat insurance policies, you may also obtain coverage for life jackets, seat cushions, tools, trolling motors, oars, anchors, and permanently attached equipment.

How Does Boat Insurance Benefit You?

Boat insurance also provides you with liability insurance, so if someone is hurt in a collision that you cause, the liability insurance will prevent you from having to liquidate your entire savings accounts to pay the injured party. If you’re thinking about getting a boat, having boat insurance could save you a lot of money in the long run.

What Is RV Insurance?

RV insurance is a policy that will protect you and your finances if you cause property damages or personal injuries in your RV. You may also be able to add coverage that will cover the expenses for damages to your vehicle.

What Does RV Insurance Cover?

RV insurance covers the following:

Bodily Injury Liability

In most cases, you’ll be required to have bodily injury liability insurance coverage. If you cause a collision while driving your RV, the bodily injury liability insurance will pay the victims’ medical bills. It will also pay your legal bills in the event that the victims sue you.

Property Damage Liability

This is the other type of liability coverage that you’re required to carry. It will pay the property repair bills for the property damages resulting from a collision that you caused.

Comprehensive Coverage

Liability coverage doesn’t apply to your vehicle, so you must add optional coverage if you’d like insurance for your vehicle. Collision coverage will pay the repair bills for your RV whether you’re at fault in the accident or not.

Comprehensive coverage protects your RV from several perils other than a collision with another vehicle. These include collisions with animals, flying debris, acts of nature, windshield damage, vandalism, and theft.

Medical Payments

Bodily injury liability doesn’t cover your medical bills, so you must add medical payments to have coverage for your medical bills if you’re injured in a collision. This coverage applies whether you cause the collision or not, and it will cover you and all of your passengers.

What Are the Benefits of RV Insurance?

RV insurance is also required, so you’ll have the means to take responsibility for the property damages and bodily injuries that you cause in a collision. Liability coverage prevents you from having to face a lawsuit entirely on your own and can keep you from losing everything that you’ve worked for up to this point.

Antique Autos

Antique autos are vehicles that are more than 25 years old. Automobile hobbyists own these vehicles, preserving, maintaining, or restoring them. The primary activity of these vehicles is to show them in exhibitions, parades, or club activities. Classic car insurance covers antique autos.

What Does Classic Car Insurance Cover?

Classic car insurance covers the following:

Bodily Injury and Property Damage Liability

If you drive your classic car on the roads, you’ll need bodily injury liability and property damage liability coverage. It protects you in the same way that your auto insurance policy protects you and the vehicle that you drive daily. It is required for a classic car, just like it is necessary for your everyday vehicle.

Collision and Comprehensive Coverage

Collision and comprehensive insurance policies cover the same issues that collision and comprehensive policies cover for your daily vehicle. This is optional coverage, but it’s very advantageous for you to have because it is insurance that pays the bills when your antique auto is damaged. Antique autos can be costly to fix after being damaged, but this type of coverage will help you pay the repair bills.

Uninsured Motorist and Underinsured Motorist Coverage

Although everyone driving on the roads must have liability insurance coverage, some people drive on public roads without this necessary coverage. If you’re hit by an uninsured motorist while driving your antique auto, your uninsured motorist bodily injury and property damage coverage will pay your medical bills and the bills to repair your antique car.

An underinsured motorist has the required liability insurance, but if the driver only has the minimum limits, this may not be enough to cover all of your medical and property repair bills. After the at-fault driver’s liability insurance pays your bills to the policy’s limits, your underinsured motorist coverage will pay the remainder of the bills.

This is optional, but it’s highly advantageous because your policy will pay the bills if an underinsured motorist or an uninsured motorist damages your vehicle or causes injuries.

Optional Classic Car Insurance

You may also choose to purchase the following optional classic car insurance policies:

Automobilia Coverage

Automobilia coverage covers collectible items associated with your antique vehicle, including station displays, gas pumps, vintage license plates and hood ornaments.

Coverage for a Disabled Vehicle

This insurance coverage pays for roadside assistance when you’re stranded. If your antique auto breaks down when you’re far from home, it will also pay for a hotel and your meals.

Vehicle Under Construction Coverage

If you are in the process of restoring your antique car, your insurance company will increase the coverage as you make restorations.

Spare Parts and Automotive Tools Coverage

The tools and the spare parts that you’re using to restore your antique car will be covered by spare parts and automotive tools coverage.

Cherished Salvage Coverage

In the event that your insurance company totals your vehicle for a covered loss, you’ll be entitled to keep your car. The insurance company will still pay you the amount they owe you for the vehicle, but the deductible will apply.

What Is the Benefit of Classic Car Insurance?

Depending upon whether or not you have a rare antique auto that needs parts that are hard to find, it could be very expensive to maintain your classic automobile. Classic car insurance can benefit an antique auto if it costs you a lot of money to repair and maintain the vehicle. Whether you’re looking to insure your first classic car or a seasoned collector, classic car insurance can help you protect your investment.

Nesso Insurance – Helping You Drive With Confidence

The Nesso Group provides several types of insurance services, including auto insurance, boat insurance, RV insurance, and antique auto insurance. The Nesso Insurance team in Connecticut has relationships with several insurance carriers, so you will have the opportunity to choose the best coverage from several companies. With so many options, you will have the best chances of finding insurance coverage at the most advantageous price for you. Get in touch with us today.

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