The Importance of Auto Insurance
Whether you are the owner of a car or simply drive on occasion someone else’s vehicle, you will need good car insurance. Understanding the requirements for car insurance will help to ensure that you receive the best policy for your needs and budget.
What it is
Insurance coverage for automobiles is part and parcel to property/casualty insurance. Coverage amounts and components vary, but purchasing the proper auto policy will often provide you with the basic liability coverage that enables a policyholder to compensate for damages and injuries that are the fault of the policyholder should he or she find themselves involved in a car accident, with the possible added protection of coverage for damage to the policyholder’s own car as well.
Who can benefit?
Good auto insurance coverage is for those who drive a car, even infrequently, since an auto policy will normally cover the driver, as opposed to the car owner, (should the two be different).
How it works
A basic auto policy will cover you for the purposes of liability should you be involved in a car crash. This is generally the minimum that each state will mandate for drivers to carry. Should you have additional coverage, you can also be covered for damages to the auto that you own too, regardless of fault. If you are involved in an accident, you will first need to contact your insurance professional as soon as possible to begin the claim process. This is vital even if it seems that the other driver might be at fault. Once liability is ascertained, your insurer will pay out for the other driver’s costs, if you’re at fault, and, depending in the coverage you have, they will also pay for damage to your car.
Kinds of coverage
There is a myriad of kinds of auto insurance coverage components. Again, liability coverage is what can pay out for any damages for which you are at fault in an accident and is generally required of drivers in all states of the union. Collision coverage is what compensates for damages done to your car in a accident, regardless of fault. Comprehensive coverage pays just about any other kind of damage done to your car outside of a crash, like from a severe weather event, theft , fire damage or even vandalism. Other common protections include uninsured motorist and personal injury coverage.
The big plus in carrying a quality auto policy is the protection afforded you in the event of causing damage to others in an accident. Another plus is the protection your own car receives if in a collision and through the further protections of comprehensive coverage.