There are few states where you can own or drive a vehicle without having automobile insurance. Below is an overview of automobile insurance as well as the different types of coverages offered.
What is Auto Insurance?
Auto or automobile insurance is a type of policy that you purchase from an insurance company if you own or drive a vehicle on public roads. This insurance covers the actual vehicle as well as the driver and passengers in the vehicle.
Who is Automobile Insurance For?
Because of the current laws, almost anyone who registers a vehicle must purchase auto insurance The individual must purchase at least the state’s requirements of liability insurance, which vary from state to state. Some states require drivers provide proof of vehicle insurance at the time a vehicle is registered.
How Does Automobile Insurance Work?
In exchange for an automobile insurance policy, you pay a premium or fee to the insurance company. The premiums are determined by factors such as age, driving experience, driving record, gender, marital status and credit. There is typically a deductible that must be paid by the customer on collision and comprehensive claims before the insurance company pays anything.
Different Types of Coverage
When you purchase vehicle insurance, you have the choice of the following types of coverage.
Collision – This pays for repairs to your vehicle when you hit into something or someone.
Comprehensive – This pays for repairs to your vehicle from non-collision damage such as animal damage, storms, vandalism, theft, etc.
Bodily injury liability – This will help pay medical expenses to others from an at-fault accident. It may also pay loss wages or pain and suffering.
Property damage liability – This helps pay for damages caused when you hit something with your vehicle.
Uninsured and underinsured motorists – This helps pay for accident-related damages caused for another driver who doesn’t have insurance or doesn’t have enough.
One of the main benefit of having good automobile insurance besides it being mandated is that your vehicle will always be protected against loss, and you will be protected against accident-related lawsuits if you or a family member do cause an accident that results in litigation.