Auto insurance is required to legally drive a vehicle on public roads. You need coverage, even if you hardly ever drive the car. If you are stopped by police, then they will ask to see your driver’s license, car’s registration, and proof of insurance card.
The purpose of car insurance is to provide financial protection when your car or people in it are hurt during an accident. It also helps pay for repairs when a vehicle is damaged. Coverage allows you to avoid paying all of the medical bills and the cost of repairing or replacing your car or the other person’s car. The insurance company pays the larger part.
When you’re in an accident, the person at fault is liable for paying the costs connected with the accident. This can include several things, including the cost to repair or replace the other person’s car, medical bills of people in the other car and in your car, and to repair damaged property.
When you buy the insurance, you choose how much coverage to get. This determines the maximum amount the insurer will have to pay for a claim. You will also select a deductible, which is what you must pay after filing a claim.
Types of Coverage
Bodily injury liability pays medical expenses for those injured in an accident that is your fault. Property damage liability pays for damage to the property of the other people involved in the accident. Collision pays for damage to your car when in an accident if it is your fault. Comprehensive coverage pays for non-accident damage to your car. And medical payments cover injuries or death and funeral expenses to you or others in the car with you.
The best thing about auto insurance is it reduces out of pocket costs. If you’re ever in an accident, then you know you’ll receive financial assistance. And depending on your coverage, you might receive help if your vehicle is damaged in a non-accident event.