Car Insurance Basics

The number of cars on the road increases each year. As this number goes up, the chances of a car wreck will also go up. The difference between a little aggravation and major pain can be the car insurance you have purchased. But why do you need to own insurance and just how much should you purchase? Your insurance may be able to pay for car crash expenses ranging from car repairs to replacement costs. By not purchasing insurance, you risk having to pay the total cost of the harm you cause others or of repairing or replacing your car if it is damaged or stolen. Liability: Bodily injury and property damage that you have caused will be covered under liability insurance. Bodily injury damages can include medical expenses, and lost wages. Property damage can refer to damaged property and loss of property use. If you are in legal trouble, liability insurance can pay for your legal fees. State laws usually require minimum amounts of liability insurance, but higher amounts can be purchased and are usually recommended. Personal Injury Protection: Personal injury insurance is required 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. The minimum amount of this insurance is typically set by local government. Medical Payments: This type of coverage can be purchased in non-no-fault states and will pay regardless of who is responsible for an accident. If you purchase this type of coverage, you will receive payment for all types of medical or funeral expenses. Collision: This pays for damage to your car caused by a collision. Comprehensive: This applies if your car is stolen or damaged by causes other than a collision, including fire, wind, hail, flood or vandalism. Uninsured Motorist: This pays for repair and replacement costs when someone with insurance is injured in an accident caused by another person who does not have insurance. Under-Insured Motorist: Many drivers have liability insurance that can't cover all the expenses they are responsible for. Under-insured motorist coverage protects you from those drivers. Other types of coverage, including car rental, are also available. Golf Cart Insurance Clermont