All you need to know about auto insurance
If you own or drive a car, nearly every state in the union requires you to have a minimum level of insurance for it. This is mostly to protect other drivers if you cause an accident, but some types of insurance also cover damage to your car. Before getting a policy, it is important to know the ins and outs of auto insurance.
What is it?
Car insurance is a type of liability and property insurance that can serve a number of functions for both the car owner and anyone affected by that owner’s actions, depending upon the type and level of coverage you have.
Who is it for?
Car insurance is for anyone who owns or drives a car. If you own a car, you definitely need to have a policy that insures the automobile. However, even if you are just an occasional driver, you still need to have a minimum level of insurance to protect yourself and others.
How does it work?
Insurance for your car works a little bit differently than other types of insurance. Most insurance policies provide benefits to cover you in the event that something happens to you that is out of your control. While car insurance can provide that type of protection, at its most basic level it protects others from you. If you are involved in a car accident or if another event happens that is covered by your policy, you must make a claim, and then your insurer will sort out liability and who is entitled to what compensation.
There are many different types of auto insurance that each have different functions. Liability insurance is the minimum that most states require, and it pays for personal and property damage or injury that you cause to another person. Collision insurance covers damage to your car in a collision that is not covered by some other insurance. Comprehensive insurance covers damage to your car from other causes, such as weather or vandalism
There are many benefits to having car insurance, including liability coverage as well as coverage for damage to your automobile.