Auto insurance is a must for any American who drives. It is required by law in all states, although many people have no idea how much they are required to have. Your auto insurance will pay you and others on your policy, even if driving your own vehicle (someone else s car), or anyone else s vehicle (without their permission). Your auto insurance only covers private driving, if you are commuting to work, going on trips or taking a trip to another city. When you get your auto insurance, it may be a good idea to check into the minimum requirements in your state, so that you know you are not paying too much out of pocket for something you should not be paying so much for.
Auto insurance is broken up into two different types, with each type covering a few different types of incidents. The first is liability insurance, which covers damage due to accidents, such as accidents involving cars, trucks, motorcycles, snowmobiles and so on. Liability insurance can also cover injuries that occur from accidents. This is usually the cheapest part of an insurance policy, and many people do not fully understand how much to expect there until they actually get involved in an accident. Once you are involved in an accident, you will be responsible for covering the repairs and medical bills for any damages to your vehicle and any other driver or person involved in the accident.
Car Insurance is required in all 50 states, and the minimum amount of coverage that is required varies from state to state. This type of insurance will protect you financially in case you are found at fault in an auto accident. You may be covered for medical costs, damages to your vehicle, any property damage you cause and loss of income or wages you incur as the result of a car accident. In some cases, financial protection is also provided to cover damage to another person’s vehicle or persons.
Collision and comprehensive coverage reimburses you for damage caused by falling objects or animals. It does not pay you for the damages caused by traffic accidents. There is also personal injury protection that will reimburse you for the pain, suffering, physical disability, past and future medical costs, disability income or funeral expenses if death is caused by a collision with a motor vehicle. Some people do not need to obtain this type of coverage, because it is often not necessary in most instances. If you need coverage reimbursed for a personal injury, you may want to check into the PIP coverage (personal injury protection).
Collision and comprehensive car insurance coverage amounts will vary greatly. Most insurance companies will offer you a standard amount to pay out when you are involved in an accident for which you are partly at fault. The amount will vary between companies, so it is very important that you compare these numbers before signing up for any insurance coverage. Generally speaking, the higher the coverage amounts, the more you will have paid in the event of an accident.
One final thing that you should consider about your insurance is the premiums that you will pay. If you plan on driving around in a brand new vehicle, you will probably want to spend more money on your premium than someone who plans to use his or her car a lot. Someone who drives an older vehicle probably has lower premiums than someone who owns an SUV. In fact, there are even hybrid drivers who can save money on their insurance premiums by choosing to drive hybrid cars instead of regular cars.