Auto insurance is coverage for automobiles, vans, trucks, and other vehicles. Its primary function is to offer financial protection against bodily injury or physical damage resulting from vehicular accidents and from liability which may also arise from similar incidents occurring in a vehicle owned by the insured. It is an obligation of all drivers to have auto insurance before going out onto the road. Without such auto insurance, drivers may be held legally liable for damages they cause to others. In this article we’ll examine some of the types of coverage offered by car insurance companies, as well as some examples of situations in which they are most beneficial.
Liability is perhaps the most important aspect of auto insurance coverage, and almost every state requires vehicle owners to carry some form of bodily injury liability insurance. This type of policy pays off if the other driver is found at fault for some kind of accident. Bodily injury liability insurance is designed to pay off the costs which result from a crash, such as medical fees and pain and suffering. If you were hit by an uninsured driver, the lender may not pay to fix or repair your vehicle, but it may still allow you to file a lawsuit to recover the funds lost due to the collision.
A car theft policy covers the costs of replacing stolen or damaged cars. When a vehicle is stolen, the owner usually has no means to contact their vehicle or get its information recovered, making it nearly impossible to return it to its rightful owner. In the case of a stolen car, a suitable replacement can be purchased from the insurance company at a fair price. Understanding auto insurance in the event of a theft is one of the best ways to make sure that you are financially protected in the event of an accident.
Roadside assistance is a special type of coverage, which exists to help drivers stranded in the event of an accident. Many drivers who use this service do so because they know that they will have access to help if they become stuck on the road. A roadside assistance plan can also pay for the legal expenses related to a lawsuit related to an automobile accident. This type of policy usually requires that motorists provide proof of having liability insurance, although most companies will not require it. This is often the primary reason for a person to seek out roadside assistance coverage.
An important aspect of many policies is the deductible amount. This amount is the amount of money that must be paid for each covered claim before the insurance provider will begin paying the difference. The deductible is usually only $500, but some companies will require a higher deductible. The actual cash value of a vehicle can be difficult to determine, and many companies will charge more than the actual cash value of the vehicle to calculate the cost of a policy. Drivers should always check the details of their policy before purchasing, to ensure that they are not receiving a policy with a high deductible.
Policies may also include a personal injury protection clause. This clause states that the driver will be responsible for any medical fees or lost wages as a result of an accident. The amount will vary and may depend on the type of policy that is being purchased. It may also depend on the severity of the injuries sustained. Personal bodily injury protection is typically the most affordable type of insurance, but drivers should make sure that they are in a position to actually carry such coverage should they need it.