Auto Insurance

Auto insurance protects a car owner against significant damage and injury caused by himself and, depending on the type, by natural disasters or even other motorists.

Insurance is a must for anyone who owns and operates a motorized vehicle. Legally, every owner is required to carry at least liability coverage and sometimes uninsured motorist coverage as well, depending on your specific state laws.

The owner of the car makes regular minimum payments, the premium, to an insurance company for the right to protection and coverage if or when a major car accident takes place. Limits are the amount your insurance provider agrees to pay you, or another person involved in an accident with you, in the event of an accident or collision. Agreeing to a higher deductible, the amount you’re willing to pay on your own out-of-pocket, will lower your overall premium. Consider your budget and car’s value when seeking advice about limits, premiums, and types of coverage.

The most important and always required type of insurance is liability. This type covers costs associated with accidents when you are at fault. Collision insurance pays for damages to your vehicle when you are involved in a collision with another car or object. Comprehensive insurance covers damages to your car not caused by collision, such as theft, vandalism, fire, hail, etc. Uninsured motorist insurance is the next major kind of auto insurance available. This type pays for damages or injuries caused by a hit-and-run driver or a driver not covering liability insurance himself. Some other types of insurance will cover towing, rental, and even medical costs.

Car insurance coverage can save you time and money in the event of an accident or damage to your car. Without insurance some major accidents could send you thousands of dollars into debt, so the relatively small cost of basic insurance coverage is usually well worth the investment.