Insurance and What It Means To You

There are more cars and drivers hitting the road every year. This can lead to a higher possibility of a collision. The difference between a small bother and major obstacle can be automobile insurance. But why is insurance required by law and just how much should you get? Car accidents can result in a variety of different expenses, which your insurance might be able to pay for based on the insurance policy you own. Without insurance, you run the risk of having to pay the full cost of the harm you cause others or to repair or replace your vehicle if it is damaged or stolen. Liability: It pays for damages due to bodily injury and property damage to others when you are responsible. It can also cover your defense and court costs if you are sued. Local laws typically mandate standard amounts of liability insurance, but higher amounts can be purchased and are usually recommended. Personal Injury Protection: This is required in some states and is optional in others. It pays you or your passengers for medical treatment resulting from a crash, regardless of who may have been at fault, and is often called no-fault coverage. This insurance can also cover lost earnings, service replacement and funeral expenses. The minimum amount of personal injury protection is typically set by local government. Medical Payments: This coverage is available in states that are not considered no-fault; it pays despite who may be responsible. This insurance will pay for an insured person's reasonable medical or funeral expenses resulting from an accident. Collision: Pays for damages to your vehicle caused by a collision. Comprehensive: This type of insurance covers any damages not caused by a collision. This could include weather damage, vandalism, and theft. Uninsured Motorist: If you are hit by a driver without insurance or a hit-and-run driver, this type of insurance will protect you. Under-Insured Motorist: Just like uninsured coverage, this type of insurance protects you against people driving without enough insurance coverage. Other types of coverage, such as emergency road service and car rental, can also be purchased. What you pay for car insurance varies by company and will depend on multiple factors, such as: * What coverage you choose * The make and model of the vehicle you drive * Your driving record * Your age, gender and marital status * The place where you live Many people think of car insurance as a necessary evil, but it can save you from a financial dilemma. Evaluate your needs, research your options, and with the guidance of your insurance agency, choose the option that best suits you. State Farm Clermont