AUTO INSURANCE ARTICLE
Auto Insurance Basics
By: cradel_bookAs a driver, you know how unpredictable the road is. Accidents happen and people get hurt. Even if you’re a safe driver, it doesn’t guarantee that you’ll never experience any road disaster. What’s worse is that even when your car is in a parking lot, driveway or in your own garage, there’s no assurance that it is secured from small accidents such as a tree branch smashing through your windshield, vandalism or theft. That is why, it is very important for you to buy an auto insurance policy so that you’ll get protection from unforeseen situations.
Why should you buy auto insurance?
Auto insurance policies are designed to protect you against financial problems caused by car accidents - whether vehicle damage, vandalism, theft, natural disasters, low-collision damage, or personal injury. This is the reason why purchasing an auto insurance policy is required by law. Each state has a minimum amount of auto insurance policy that each driver should purchase and everyone is expected to abide by it or risk being sent to jail. In addition, if you purchase your car through loan, your lender would also require you to buy at least the minimum amount of car insurance policy. As you can see, auto insurance policies are not just luxuries, but a requirement, and failure to purchase at least the cheapest auto insurance available in your area is considered as a serious criminal act.
Basic Insurance Coverage
Auto insurance policies are broad in nature. In fact, different states vary in their basic insurance coverage. Some insurance coverage is optional or required, depending on your state so you need to check with your state’s minimum requirements before you purchase your auto insurance policy. However, the most common insurance coverages included in most basic auto insurance policies are the following:
Liability coverage – This type of insurance pays for the property (car repair or replacements of properties) or bodily injury damage (accidents where other people are injured or killed) you need to pay. In addition, this coverage also shoulders your legal costs in case you need to defend yourself against lawsuits related to accidents.
Collision, comprehensive, uninsured and underinsured motorists, and medical payment coverages – These type of insurance coverages cover the repair and replacement of your car, medical and/or funeral expenses for you and your passengers or as pedestrians and other-than collision accidents . In short, these coverages insure you and your car against accidents and medical expenses. Although some states do not require you to buy these, it can really help you a lot especially if you can’t afford to pay for your personal losses in case of an emergency.
Additional coverages – These are optional but affordable coverage to increase your protection against any car trouble. Some of the basic additional coverage of auto insurance companies are:
- Gap coverage
- Towing and labor or roadside assistance
- Rental reimbursement