The Importance of Auto Insurance
Whether you are the owner of a car or simply drive someone else’s vehicle on occasion, you will need good car insurance. Since it’s also mandated by law, understanding the ins and outs of 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 provide you with the basic liability coverage that enables you to compensate for damages and injuries if involved in a car accident that is your fault, with the possible added protection of coverage for damage to your own car, as well. Good auto insurance coverage is for anyone who drives 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, regardless of fault. When involved in an accident, you will 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 on the coverage you have, they will also pay for damage to your car.
Kinds of Coverage
Again, liability coverage is what will pay out for any damages for which you are at fault, and is generally required of drivers in all states. Collision coverage compensates for damages done to your car in an accident, regardless of fault. Comprehensive coverage pays for just about any other kind of damage done to your car, such as 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 in the event you cause 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. It can be dangerous out on the roads. Good car insurance will provide you with financial protection and peace of mind.