Auto Insurance Basics
Legality
Car insurance is a legal requirement in most states. However, the type and amount of coverage required will vary depending on where you live. Regardless, it is important that you get the coverage you need, even if it goes beyond what is required, to save you from spending thousands in the event of an accident.
Coverage
Although different insurance companies provide different options, there are still six basic types of car insurance coverage:
- Uninsured or Under-Insured Motorist Coverage: This coverage protects you in the case of an accident involving someone who does not have any, or enough, coverage to pay for damages. This can also apply to hit and run incidents
- Comprehensive Coverage: This coverage protects your car if damage occurs due to something other than colliding with a vehicle or object. This can include fires, vandalism, windshield damage, falling objects, etc.
- Collision Coverage: As the name suggests, this is coverage for incidents involving a collision. Personal Injury Coverage: This coverage takes care of your medical bills, lost wages, and other expenses accrued if you are hurt in an accident.
- Bodily Injury Liability: This coverage protects you if you injure someone else in an accident, and have to pay for their medical bills. Property Damage Liability: Similarly, if you hit someone else, this coverage takes care of their property damage bills.
General Advice on Auto Insurance
How to Choose
There are hundreds of insurance companies out there. For getting the optimal deal, comparison shopping - is the best thing enabling you to get a price range for annual premiums. Another important thing is to read reviews about the insurance companies to make sure you are choosing a reputable provider. And always compare quotes for the coverage you need, as your goal is the lowest rate for the most coverage.
Avoid Accidents
Finally, although insurance is a requirement and you cannot predict the future or the actions of other drivers, the best thing you can do to avoid insurance problems is avoid accidents! Don't drive while impaired, and stay focused while driving. If you are sleepy or otherwise distracted, pull over!
