Practically all who own and/or operate a motor vehicle will need to obtain a certain level of auto insurance coverage to cover themselves from the possibility of an accident. It is also mandated by law in all states in some form and is certainly required by lending institutions should you have a loan out on your car.
Car insurance covers the spectrum from the bare minimum to full and comprehensive coverage with all the trimmings. Liability insurance is what states will likely require as the minimum amount by law. The liability portion of your policy is what helps to pay for damages to other vehicles and property that are deemed to be caused by you in an accident. Collision insurance handles the damages to your vehicle from an accident and the comprehensive aspect helps with damage caused by events such as weather, vandalism or theft. In a nutshell, with comprehensive coverage your insurance pays for the damage to your car caused by any event other than a collision. Some states require that you carry personal injury coverage as well, which is meant for medical expenses not covered by health insurance.
It is an obvious conclusion that anyone who drives a motor vehicle will need at least the aforementioned liability coverage. Again, should you have a loan on your vehicle then your lender will require you to have not only liability but collision and comprehensive too. It’s a easy to see how carrying proper coverage on a newer car, even if you paid for it outright, is a smart decision. A car is a substantial investment for many and common sense dictates it, really.
If you find yourself involved in an accident, the next step is to contact your insurer and file a claim as soon as possible. If you’re at fault, your insurance company will take charge of whatever damages are covered under your policy after you have paid your deductible amount (assuming also that you have kept up with your premiums as well). If the other driver is at fault, then his or her insurance company pays.
There are two great benefits in purchasing auto insurance: There is protection for any loss you might suffer and there is coverage for liability. In purchasing good auto insurance coverage, you help to ensure you will be compensated for damages and that you will have the ability to pay for damages to other driver’s cars and any additional property as necessary.