What is auto insurance? If you need to purchase a policy for the first time or are just interested in learning more about consumer insurance in general, this article can help you figure out what car insurance is and how to choose the right policy.What It Is
Auto insurance is coverage for automobiles, motorcycles, and other road-going vehicles. Its chief purpose is to offer financial protection against bodily injury or physical damage resulting from road accidents and against liability that may arise out of such accidents in a private car. It is an essential law requirement and is required by all states in the United States. A car insurance policy will typically cover the insured vehicle against damage due to fire, theft, natural calamities (including collision with a tree or a sign of impending tornado in the middle of town), vandalism, malicious mischief, and collision with an uninsured driver.
Collision Coverage
When searching for car insurance, you may want to investigate the various aspects of common auto policies. One example is collision coverage. Collision coverage will pay for repair costs resulting from a crash between two vehicles. If your car is financed through a bank, they may want to help protect their interest in your vehicle by requiring collision coverage. That way, they won't lose their investment in your vehicle. Additionally, if you have no collision coverage on your vehicle at the time of a crash, you may be in a difficult financial situation.
Personal Injury Coverage
Another aspect of auto insurance you should know about is personal injury protection, which may help pay for your or your passengers' funeral or medical bills if you're at fault in an accident. Personal injury protection could also help pay for lost wages. Both types of compensation depend on the nature and severity of your injuries. It is typically a mandatory form of coverage whenever auto insurance is required.
Add-Ons
Various endorsements can be tacked on to your personal injury and collision policy to give you greater coverage. Examples include roadside assistance, rental car protection, towing coverage, and rental reimbursement insurance. Offerings may vary between insurance providers.
While many car owners are not aware of the varying aspects of auto insurance, coverage is offered at a lower rate by some companies than others and with different provisions. Be sure to shop around for the best rates and the most appropriate protection for your needs.