Auto Insurance Guide:
Everyone who owns a car needs auto insurance. In fact, did you know it is illegal NOT to have auto insurance on your car? It is for our protection as well as other drivers protection. State car insurance requirements are there to make sure if there is an accident, the cost of damages will be paid.
Auto insurance is an insurance policy that people purchase for trucks, cars, and other motor vehicles. As previously stated, the primary use is to protect us against any losses that may occur in an auto accident. It also should protect us against liability if we injure another person during these accidents.
As stated previously, it is against the law to be uninsured before driving your vehicle on the road. If you are stopped for a traffic violation and found to have no insurance, the results could mean a ticket, your license is suspended, revoked, or spend time in jail.
There are many forms of car insurance — full coverage to PLPD – the type of auto insurance your purchase will depend on the type of coverage you desire. The cost of auto insurance is usually determined by your age, the length of time you have been driving, the type car that you will be driving and other factors.
Below is a list of different types of car insurance coverage:
Liability- This covers up to a certain dollar amount for damages that an insured driver pays for damages due to negligence and other factors. Say you were not paying attention and your car hit an electric pole, liability would cover for the cost to replace that electric pole. Liability is available as a combined single limit or as split limits.
Comprehensive- This provides coverage, which is subject to a deductable for damages to a vehicle by events that are not considered collisions. This would cover theft, fires, or impacts with animals.
Uninsured/Underinsured- This provides coverage for those who may not have car insurance or the insurance is not enought to cover all the costs resulting from an accident.
Loss of use- This usually pays for a rental car, and provides reimbursement for car rental expenses because the insured vehicle is being repaired.
Gap Insurance- Once a car leaves the car lot it loses its value tremendously. If your vehicle has damages beyond repair or is considered “totaled”, the insurance company will pay the “gap” between what is owed on the car and what the regular auto insurance policy values your car at.
Towing- Pays for your vehicle to be towed. This is also known as roadside assistance insurance.
When buying a car, most car dealerships require you to purchase liability coverage with your auto insurance, if you are financing the new car. You may also consider “gap” insurance as well.
The cost of auto insurance varies tremendously from insurance company to insurance company. You should always “shop” around for the best rates! You can actually get insurance companies to “compete” for you business — simply use NetQuote’s service to query auto insurance companies on your behalf. They will help you find the very best, cheapest auto insurance!
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See Also: Top Insurance Rates – Auto Insurance
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