Do I need multiple insurances in 2020 if I have more than one car?
Cars have made their way to peoples’ list of indispensable items. With increasing demand to communicate between places for work, running errands, etc. and the ability of cars to facilitate smooth and convenient rides have made them a top priority for a lot of people. Such a valuable and costly asset needs to be taken care of properly. Repairing automobiles can be a real pain considering the capital they demand and can disrupt your monthly savings. Hence, having a car insurance policy is a must to deal with any damages caused due to any unforeseen events like accidents, natural cataclysm, etc. It can cover your losses without having you spend a single penny.
Whether to buy multiple auto insurance policies for multiple owned cars?
People owning more than one car often get curious about how to buy insurance policies. To quench the curiosity, let us first have a look at the various facets an auto insurance policy can cover for.
Types of coverage
● Third-party liability coverage
A third party liability coverage can cover the losses caused to the third-party. Your insurance carrier will pay for the damages caused to the property or any physical harm caused to the third party member. This comes under the minimum liability cover set by the Californian government.
● Own damage coverage
An own damage coverage will cover for the damage caused to the policy owner’s vehicle or any physical harm caused to the owner or driver in an accident or while confronting a natural force like a storm, hurricane, etc.
● Personal accident coverage
Having this auto insurance coverage will cover for deaths or permanent disabilities caused to the owner of the policy or the third party member. This is also a mandatory insurance coverage to have according to law. This coverage usually comes with third-party or comprehensive auto insurance policies.
Now that we have got the different aspects of auto insurance coverage under our belt, let us look at which coverages demand buying separate policies for multiple cars owned. This will help you to decide the number of car insurance policies you need to have for your multiple cars and what all coverages you need to add for each of them.
It is mandatory to buy a third party coverage insurance policy for each of the cars owned separately. Just having third party cover for one of the cars that you own is not enough. Not having a third party cover for any of the cars that you ride is an offence under the eyes of law and can hit you with a heavy ticket. You may buy the third party coverage auto insurance policy from the same insurance company or different ones. Buying multiple car insurance policies from the same insurance company might reward you with some discounts on premium payments.
Own damage cover
As a third-party cover, own damage cover insurance policy only covers for the damage caused to the car mentioned in the policy. Hence, in case you have multiple cars, you need to buy the cover for each one of them separately. Although it is not a legal compulsion to have a comprehensive cover(own damage cover plus third party cover) for each car that you own, it sure is a life-saver at disastrous times. But if the added cost of premiums for comprehensive cover does not fit your budget, you always have an option to select which car you need to be buying the cover for.
Personal accident cover
Personal accident cover is available with third-party liability or comprehensive car insurance policies. You can add personal accident cover as an add-on to the insurance policies that you buy for your cars.