How Does Automobile Insurance Work?

The number of cars on the road increases each and every year. As this number increases, the possibility of accidents also increases. The difference between a small bother and major pain can be your insurance. But why do you need to own insurance and just how much should you buy? Insurance requirements vary by state/province, but typically include the following: Liability: Pays for the expenses you have caused to others in a car accident, including property damage and injury. Bodily injury damages include medical fees, lost wages, and pain and suffering. Property damage includes car repair costs and loss of property use. It can also cover your legal fees if you are sued. Local laws typically mandate minimum amounts of liability insurance, but higher amounts can be purchased and are extremely helpful. Personal Injury Protection: This is mandated in some states and is optional in others. Sometimes referred to as no-fault coverage, this pays the medical treatment for you or your passengers regardless of who was at fault. This insurance may also cover lost wages, replacement of services and funeral costs. Local government typically sets minimum amounts. Medical Payments: Medical payment coverage is available in states that are not considered no-fault and will pay regardless of who is responsible for an accident. It pays for all insured person's reasonable and necessary medical or funeral expenses for bodily injury from a crash. Collision: Pays for damages to your car caused by a collision. Comprehensive: Protect your car from damages from other sources by purchasing this type of coverage. This may include protection from theft, vandalism, and fire or flood damage. Uninsured Motorist: Pays for repair and replacement costs when someone with insurance is in an accident caused by a driver who does not have liability insurance or by a driver who cannot be identified (typically a hit-and-run driver). Under-Insured Motorist: Many drivers have liability insurance that might not be able to cover all the expenses they are supposed to take care of. This type of insurance covers you in accidents involving those drivers. Emergency road service, car rental, and other varieties of coverage can also be purchased. Your car insurance payments varies based on the company and will depend on multiple factors, including: * Which policies you select * The make and model of the car you own * Whether or not you have been in an accident * Your age, gender and marital status * Where you live Don't procrastinate buying auto insurance; you shouldn't be on the road without it. Review your needs, do your research , and with the help of your insurance agent, make the decision that fits you best. Auto Insurance Quotes Clermont