Auto Insurance Basics

Each year, more automobiles and drivers travel the highways. This could lead to a higher possibility of a collision. The difference between a small aggravation and major obstacle can be the car insurance you have purchased. But why is insurance necessary and just how much do you need? Car insurance protects you by covering the cost of damage or injury you inflict on others while driving your car, damage to your vehicle or injury to you or your passengers from an accidents, and certain other situations, such as robbery. Every state or province requires car insurance by law. Making the decision to drive without owning insurance could mean you have to repair or replace a stolen or damaged vehicle or pay the cost of any damage that you may have caused. Liability: Liability pays for the expenses you are responsible for in a car collision, including property damage and injury. Damages from bodily injury can include medical expenses, lost wages, and pain and suffering. Property damage can refer to damaged property or loss of use of property. It can also cover your defense and court costs if you are sued. Local laws typically require minimum amounts, but higher amounts are available and usually recommended. Personal Injury Protection: Personal injury protection pays for hospital bills and other medical treatment for you or other people in your car, no matter who was at fault in the accident. It is sometimes referred to as no-fault coverage. This insurance may also pay for lost wages, replacement of services and funeral costs. The minimum amount of this insurance is usually set by local government. Medical Payments: Medical payment coverage can be purchased in states that are not considered no-fault; it will pay regardless of who may be responsible. All necessary medical or funeral expenses will be paid for under this insurance policy. Collision: Pays for damage to your vehicle caused by a collision. Comprehensive: This type of insurance protection takes care of any damages not caused by a collision. This could include flood damage, vandalism, and robbery. Uninsured Motorist: Pays for repair and replacement costs when an insured person is injured in an accident caused by another person who does not have insurance. Under-Insured Motorist: Pays for collision expenses when an insured person is injured in an accident caused by another person who does not have enough liability insurance to pay for the total cost of the damages. Emergency road service, car rental, and other types of car insurance can also be purchased. What you pay for auto insurance varies by company and will depend on several factors, including: * Which policies you select * The type of the vehicle you own * Whether or not you have been in an accident * Your age, sex and marital status * The place where you live Many people think of auto insurance as a necessary evil, but it can rescue your finances. Evaluate your needs, do your research , and with the guidance of your insurance agency, choose the option that best suits you. State Farm Clermont