An Overview of Auto Insurance
Those who have experienced a car accident certainly understand the need for good car insurance protection for financial loss and injury protection. it is always a good idea to periodically review your car insurance coverage to ensure you are carrying adequate protection for your needs. Practically all states now require that drivers show financial responsibility and this is usually is in the form of having minimum basic insurance coverage. Often the bank or other kind of lender who gave you the loan for your car will require full coverage.
Types of Coverage
A usual car insurance policy will offer three main types of auto insurance coverage, which are liability, collision and comprehensive. Policyholders are free to buy other extra kinds coverage to ensure the policy is more comprehensive in nature.
Normally liability coverage is mandate by the states. It is a general requirement that drivers be responsible for any damages for which they are at fault while operating a vehicle. Liability coverage pays out to other parties for losses and/or injuries that you caused. Liability will cover any of your own repairs, medical costs or other expenses you may incur. Keep in mind that liability coverage will only pay up to the set limits of the policy. However, you may choose to obtain a higher coverage limit than what is mandated by law.
Both collision and comprehensive coverage will compensate you for your vehicle repair or replacement. Collision pays out for repair or replacement work should the damage have been a result of auto collision. Comprehensive insurance pays out for damages from a myriad of loss-inducing events, such as vandalism, theft or weather damage and more. Again, there is optional coverage for towing, rental car reimbursement, personal injury, gap insurance and so on, should you ask for it.
To keep your coverage current, you are obligated to pay your car insurance premium consistently and on time. There will likely be a deductible to also pay when filing a claim. Many insurance providers give the policyholder the freedom to choose their own deductible.
Accidents can happen at any time and any place. Carrying good auto insurance coverage will protect you from the potential financial consequences of the many risks that one faces as a driver.