Should you be shopping for coverage for your motor vehicle, the following is a quick and easy guide for your next auto/car insurance purchase.
What is car Insurance?
Auto insurance enables you, those in your car and your car itself to be financially protected in the event of an auto accident. As long as you pay your premiums, which are generally due on a monthly basis and sometimes biannual or annual, you are covered and protected. The cost of your premium is determined by your driving record, your age and gender, the kind of car you own and the area in which you live and operate the vehicle.
Car insurance is for all who operate a motor vehicle and some form of coverage is mandated in every state of the union. The level of coverage that is required changes from state to state. Additionally, should you have utilized a loan to purchase your car, then the lender will also require full coverage for your vehicle for as long as the load is in effect.
How Auto Insurance Works
It is really quite elementary as to how this all works: You simply pay a certain premium and then you are covered by different kinds and levels of coverage depending on your needs. Your premium costs can be lowered by having a larger deductible, which is the amount you first have to pay in order for the remaining amount of the claim to be paid by the insurance company. So, in short, the more you pay as deductible, the lower your monthly premium costs will be.
Kinds of Coverage
Collision coverage is what compensates you for your car repair or replacement in the event of an accident with another car or an accident that results in some kind of property damage.
Comprehensive covers damages not caused by a collision but instead by natural events such as a storm, a collision with a deer, a brick falling on your hood, etc. This coverage can also include theft and vandalism damages.
Bodily injury liability coverage compensates passengers who have medical bills or loss of wages as a result of an accident for which you are at fault.
Property damage liability covers you for damages to any property caused by the operation of the motor vehicle you are driving.
Uninsured and underinsured motorist coverage pays for damages to you or your passengers by an at- fault uninsured or underinsured motorist.
The Main Benefits
The main benefits of obtaining auto insurance are the assistance and protection it provides in helping to pay for any medical expenses, damage or loss of your vehicle and any possible litigation that results from auto accidents. And, of course, the peace of mind provided by insurance is priceless.