The Ins and Outs of Car Insurance
There is a myriad of reasons for carrying good car insurance. Arguably the most notable of which is that it is mandated by state law. (Pretty much all states require that a driver carry at least some level of liability coverage.) Should you still be paying off a loan for your vehicle, then your lending institution will have mandated that you carry some level of comprehensive and collision coverage too.
Why It’s Important
As mentioned, your state will normally require that you carry, at the very least, liability auto insurance coverage. Without this protection, you can easily lose your privilege to drive. Liability insurance functions to protect you and others while operating a motor vehicle. If you become involved in an auto accident and are at fault, your liability coverage helps by paying out for physical damage to the other car, along with the other driver’s (and his or her passengers) medical costs. If the other driver were at fault for the accident, their insurance company pays for any physical injury and property damage that they caused to you and your vehicle.
Other Aspects of Coverage
Other important aspects of this coverage enable you to safeguard your property. You can buy physical damage protection so major expenses can be handled to deal with damage to your vehicle.
Collision coverage pays for damages to your vehicle regardless of fault, while comprehensive coverage pays for such things damage from severe storms, theft and vandalism, fire damage and so on. For these protections, a deductible is first paid prior to receiving compensation.
There are different options available as well, such as roadside assistance coverage, car rental insurance, gap insurance and even, in some cases, a supplemental accident forgiveness benefit.
Keep in mind that a variety of choices will be made available from one insurance company to another, so it’s smart to check in with your agent to find out what types of coverage are best for you. Regardless, know the details of all helpful and, often, legally mandated benefits of good auto insurance.