Auto insurance is smart planning that can help protect you from expensive, sometimes devastating surprises.
It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Auto insurance provides property, liability and medical coverage: Property coverage pays for damage to or theft of your car.
Not all states require auto insurance, but all 50 states do require financial responsibility. That means that you have to prove that you will financially able to deal with the costs of an accident either through a valid insurance policy, a bond or other means allowable in your state.
For the average person, their car is their second most expensive investment. The more that you rely on your car and the less able you are to replace it out of pocket if something happens to it, the more vital auto insurance becomes.
Selecting the proper level of coverage ensures that if you are involved in a lawsuit, you will have the amount of money required to pay for any damages should you lose the case.Additionally, the insurance company will make sure you have proper representation for any court proceedings, which will at the very least provide you with some level of contentment.Depending on the level of coverage you purchase and the limitations, you may not have to revert to using personal finances to resolve the issue.
Serious accidents sometimes occur. However, because medical costs are rising on a daily basis, it is imperative that the auto insurance policy you choose makes provisions for hospitalization and even post-surgical procedures, like physical therapy.
• Liability Coverage: It is the most important coverage and is required in most states. Basically, if you cause an accident, hurt someone or damage someone's property, it can pay for covered damages and to defend you if a lawsuit results.
• Collision Coverage: It helps pay for damage to your vehicle if your car hits another car or object, is hit by another car, or your vehicle rolls over. This coverage is generally required if your car is financed or leased.
• Comprehensive Coverage: It helps pay for damage to your vehicle that is not caused by a collision. Examples include theft, vandalism, hitting a deer or other animal, storms and certain natural disasters.
• Medical Payments Coverage: It helps pay for covered medical expenses for anyone injured while in your vehicle, regardless of who is at fault. Uninsured/underinsured motorist coverage can help pay for damages and medical costs resulting from an accident caused by someone who has no insurance or inadequate insurance coverage
Auto insurance providers allow you to choose your deductible and decide whether to add additional coverage that isn't necessarily required by the laws in your state. Compare car insurance, the specifics of your coverage and deductibles play a major role in your monthly payment. Typically, choosing a higher deductible means a lower monthly payment; choosing a lower deductible means a higher monthly payment. Additional coverage gives you added financial protection, depending on the claim, but also adds to your monthly costs.
By collecting a large amount of data from customer claims and analysing industry safety reports, auto insurance providers often develop vehicle safety ratings and offer discounts to customers who drive safer vehicles. Some insurers increase premiums for cars more susceptible to damage, occupant injury, or theft, and lower rates for those that fare better than the norm. Before you head down to the dealership, do some research? Does the vehicle that has caught your eye have strong safety ratings? Is the same particular model often stolen? Knowing the answers to a few simple questions can go a long way in keeping your rates low.
People who use their car for business and long-distance commuting normally pay more than those who drive less. The more miles you drive in a year, the higher the chances of an accident - regardless of how safe a driver you are. Consider joining a car or van pool and other ways to drive less. If you reduce your total annual driving mileage enough, you may lower your premiums.