Auto Insurance Basics
Car insurance is a policy that helps policyholders pay for expenses following a car accident. Most US states require all car owners to have insurance coverage. Getting caught driving without coverage can result in fines or loss of license. It’s also usually impossible to get a new car tag or renewal without proof of insurance.
Different Types of Coverage
Liability coverage pays for damages that the policyholder causes during an accident. That includes medical bills and property damage. This coverage does not pay any of the policyholder’s expenses.
Types of Car Insurance
Collision coverage reimburses the policyholder for damages caused during a collision. This includes collisions with objects such as animals and trees. It also covers situations in which the car flips or rolls over.
Underinsured and uninsured coverage is useful as well. This type of policy is for when an underinsured or uninsured driver has an accident with the policyholder. There’s also gap insurance which partially pays some of the car note when a new car is stolen or totaled.
Comprehensive coverage is for a variety of situations. It’s like a combination of several other policies already mentioned.
Benefits of Car Insurance
Car insurance helps when you’re liable for property damage or physical damage following an accident. But it’s also beneficial because it’s required by most states. And without it, you can’t legally drive on public roads.