Things to know about Car Insurance
Virtually all who own and/or operate a motor vehicle will need to obtain a certain level of auto insurance coverage to protect themselves and other individuals should an accident happen. It is also required by law in the fifty states and mandated by lenders should you have a loan for your car.
The Types of insurance
Auto insurance policy coverage will vary from the bare minimum to full coverage with all the extras. Some level of liability coverage is what states require by law. The liability portion of your coverage is what compensates for damages to other vehicles and property that are caused by you, i.e. for which you are found to be at fault. Collision insurance deals with the damage to your vehicle from a crash, while comprehensive helps with various kinds of damage that are the result of such things as weather, vandalism or theft. Simply put, this coverage pays for damage to your auto caused by anything other than a collision.
Who needs it?
All who operate a motor vehicle are required to purchase, at the very least, liability coverage. Again, should you have a loan on your car your lender will also require you to have not just liability but collision and comprehensive coverage as well. It’s obvious for most to see the importance of carrying full and proper coverage on a newer car, even if it is already paid for. A car is no small investment and it’s just logical to do so really.
How it functions
Should you be involved in an accident, you are then encouraged to file a claim as soon as possible with your insurance company. If you’re the one at fault, your insurance company will handle whatever damages are listed as covered in your policy. This is after you have paid your previously agreed upon deductible and, of course, this is assuming that you have kept up on your premium payments too. If the other driver is determined to be at fault, then his or her insurance company will pay out. Make sure you exchange information with the other drivers, get witnesses if you can, obtain photographs, etc. (Anything that can bolster your case should it be necessary.)
This protection keeps you from being responsible for potentially devastating out-of-pocket costs. Essentially there are two big benefits in purchasing good car insurance. First is the coverage for any loss you might suffer and then there is the invaluable liability protection it offers. In obtaining proper insurance coverage, you can rest assured in knowing that you will be properly compensated for damage to property (including your vehicle) and, should you be at fault, that you will have the means to pay for damages to another driver’s car and any additional property damage resulting from the accident.