Auto insurance is a form of coverage that provides financial protection should your car be damaged or passengers or other drivers injured. If you carry this coverage, the insurance provider pays for most, if not all, of your expenses rather than forcing you to pay for medical and car repair or replacement costs out-of-pocket.
No matter in which state you reside, you are mandated by law to carry a certain level of auto insurance. In addition to the legal requirement from your state, lenders also require protection. And no one should be without it, mainly because car insurance will protect you and your family financially should an accident or some other event occur.
How it Functions
When a vehicle is involved in an accident, the person who is deemed to be at fault is liable for coming up with the money to pay all the costs that result. This often overwhelming sum will include the cost of repairing or replacing all cars involved in the accident, any medical expenses incurred and repairs for any damaged property, as well.
When purchasing good car insurance, you are in charge of determining how much coverage you will have. In addition to the coverage levels, you’re also free to choose the size of the deductible, which is how much you must first pay before the insurer provides compensation. This amount varies, usually in increments of $500 and $1,000. Generally, the higher the deductible, the lower the premiums you have to pay on a monthly, or other, basis.
Types of Coverage
• Liability (Injury/Death)– This is what pays for medical or other costs incurred by those injured or killed in an accident for which you are at fault.
• Liability (Property Damage)– This coverage compensates for damages to the property of the other drivers or affected individuals, including the vehicles and structures, etc.
• Collision– This component of coverage pays out for damages to your own vehicle that are the result of an accident, if it is your fault or otherwise.
• Comprehensive– This type of coverage compensates for any covered damages to your vehicle that result from anything other than an accident. Examples include the financial consequences of damage or loss from severe weather, theft, vandalism, etc.
• Medical Payments – This covers your injuries, and can even to help your survivors to pay for funeral expenses.
Accidents happen. The big plus in carrying good auto insurance is the help it provides in covering repairs and medical costs which could otherwise financially devastate you. You simply make your premium payments consistently and on time and, in return, you can enjoy the peace of mind of knowing that you and your family are well protected.