A Guide to Auto Insurance
Just about everyone who owns and/or operates a motor vehicle will be mandated to carry some level of auto insurance coverage to protect both themselves and any others involved, should an accident happen. All fifty states require some level of minimum coverage and also mandated by lenders should you have a loan for a car.
Who needs Coverage?
All who operate a car are required to purchase, at the very least, liability coverage. If you have a loan on your car then your lender will likely also mandate you to have not just liability but collision and comprehensive coverage too. It’s obvious for most to see the importance of having full and proper coverage on a newer car, even if already paid off. A car is no small investment and it simply makes sense to do so.
The Coverage Types
Auto insurance policy coverage varies from the bare minimum to full coverage with all the proverbial bells and whistles. Each state will mandate some level of liability coverage by law. The liability aspect of coverage is what pays out for damages to other vehicles and property for which you are found to be at fault. Collision insurance deals with the damage to your vehicle from an accident, while comprehensive helps with damage that is the result of other issues, such as weather, vandalism or theft. Simply put, this coverage compensates for damage to your auto caused by anything other than a collision.
How it Works
If you find yourself involved in an accident, you are then encouraged to file a claim as soon as possible with your insurance provider. If you’re the one responsible for the accident, then your insurance company will handle whatever damages are listed as covered in your policy. This is after you have paid your previously agreed upon deductible and, of course, all your premium payments too. If the other driver is determined to be at fault, then that insurance company will pay out. Make sure you exchange information with the other drivers, get all the witnesses you can, take photographs, etc. (Anything that can help your case should it become necessary.)
This protection eliminates the need for you to provide potentially devastating out-of-pocket funds resulting from some kind of covered loss. Basically there are two big benefits in purchasing good car insurance. First is the coverage for any monetary loss you might otherwise be saddled with and then there is the vital liability protection it offers. In obtaining good auto insurance coverage you can enjoy the peace of mind in knowing that you will be properly protected for damage to property (including your vehicle) and, if you’re at fault, that you will have the means to pay for damages to another driver’s vehicle and any additional property damage that is the consequence of an accident.