Auto Insurance
Auto Insurance

Auto insurance is a contract between you, the policyholder, and your insurance company. Auto insurance is the most common type of insurance sold in the United States. The agreement says that if you are in an accident that wasn’t your fault. The insurance company will pay for any damages you cause. You agree to pay your premium each month to keep the coverage in force.

It is also one of the most expensive types of insurance to obtain and maintain. So it’s important to understand what it covers. How much you pay for it and what your options are if you want to avoid paying for coverage you don’t need.

Auto insurance protects you against financial loss caused by an accident or incident involving your vehicle. Your auto insurance policy covers:

  • Medical expenses
  • Property damage (including vandalism)
  • Loss of use (if you have a car loan or lease)
  • Collision deductible

What do I need auto insurance for?

Whether you drive a car, truck, motorcycle, bicycle or other vehicle on public roads. You need auto insurance to protect yourself financially if something bad happens as a result of driving your car on public roads. For example, if you get into an accident with someone who was texting while driving and cause damage to their car or injure them as a result of their negligence (and then deny responsibility), then your insurer will be responsible for paying for repair and replacement costs related to that accident. Your insurer will also pay any medical bills related to those injuries if they occur after the accident.

Types of auto insurance:

There are different types of auto insurance:

Collision Coverage:

This is when one vehicle hits another. The insured is responsible for paying the other vehicle’s deductible and all medical expenses up to their policy limits.

Comprehensive Coverage:

This covers all damages, theft, vandalism and accidental damage from natural calamities. Such as lightning strikes, hail storms and windstorms.

Liability Coverage :

You can purchase liability insurance. which covers the damages that another party may cause to your car if they are at fault for causing an accident with your car. This will cover their medical expenses up to your policy limits. As well as their lost wages for 30 days.

Uninsured/Underinsured Motorist (UM/UIM) Coverage :

This pays for injuries caused by drivers who do not have enough coverage themselves, but whose vehicles are registered as belonging to someone else who has full coverage. UM/UIM coverage provides benefits that exceed those of traditional liability coverage.

Benefits of auto insurance:

The auto insurance industry has a lot of advantages to offer. Here are some of the benefits:

  1. it’s an investment in your vehicle:

Most people use their cars only once or twice a week, so it makes sense to take care of them and keep them in good shape. Auto insurance can help you make sure your car is insured for as long as it will be useful to you.

  1. it’s a way to save money on gas:

If you drive less than 10,000 miles per year, auto insurance may be able to lower your monthly payment by hundreds or even thousands of dollars. And if you have an older car that doesn’t need as much upkeep, it could even save you money on repairs over time.

  1. You can get discounts when shopping for new coverage

Many providers offer discounts for having comprehensive and collision coverage as well as good driving records. All things that help keep your premiums low.

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