Automobile insurance is one of the most common types of insurances there is. Almost every state in the US requires you to have auto insurance, and the minimum coverage criteria vary from state to state. Finding a balance between saving money and having enough coverage is the key to finding good automobile insurance. There are three major types of auto insurance, including liability coverage, collision coverage, and comprehensive coverage.
Car insurance is for anyone who drives a motor vehicle regularly, whether for commercial purposes or personal. It protects drivers in the event of an accident and pays for damages that either you cause or those that are caused by other people, including damage to your vehicle as well as any injuries that occur to either you or the other driver.
For example, in the event of car accident in which you are not held at fault (because, for example, someone else hits you), you file a claim with your insurance company and tell them the details of the accident. You may be asked to provide information about you and your vehicle as well as information about the other driver, if you have it. This is why it’s always important to exchange information at an accident site. If people are severely injured, the police who arrive can usually take care of this when they file their police report, but if both parties are uninjured, it’s typically the drivers’ responsibility to exchange information for insurance purposes. After you file the claim with your insurance company, they typically send a claims adjustor to take photographs and notes about your damaged vehicle in order to determine the extent of the damage. The insurance company then either pays for repairs, or if the car is totaled, they’ll give you a check for how much they assess the vehicle’s value to be.
This type of insurance protects you in case you are found at-fault for an accident. It pays for any medical bills for you and the other driver, as well as covers any property damage that may have occurred.
Simply put, this type of coverage pays for repairs to your car in the event of an accident, whether you’re held at fault or not. If you have a loan on a car, this type of coverage is required by the lienholder.
This type of coverage protects your car from damage not related to accidents, including theft, vandalism, or acts of nature. It’s a great thing to have if you can fit it in your budget.
It’s generally an excellent idea to have car insurance so that you can be protected in case you are involved in an accident. It covers you in the case of other people’s negligence as well, which is important given how unpredictable some driving situations can be.